Regal Company acquired a delivery truck on 2009 January 2, for $107,200. The truck had an estimated salvage value of $4,800 and an estimated useful life of eight years. At the beginning of 2009, a revised estimate shows that the truck has a remaining useful life of six years. The estimated salvage value changed to $1,600. Compute the depreciation charge for 2009 and the revised depreciation charge for 2009 using the straight-line method.
Regal Company acquired a delivery truck on 2009 January 2, for $107,200. The truck had an estimated salvage value of $4,800 and an estimated useful life of eight years. At the beginning of 2009, a revised estimate shows that the truck has a remaining useful life of six years. The estimated salvage value changed to $1,600. Compute the depreciation charge for 2009 and the revised depreciation charge for 2009 using the straight-line method.
Chapter11: Long-term Assets
Section: Chapter Questions
Problem 4EB: Montello Inc. purchases a delivery truck for $25,000. The truck has a salvage value of $6,000 and is...
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