The Vermont Construction Company purchased a hauling truck on January 1, 2009 at a costof $35,000. The truck has a useful life of eight yearswith an estimated salvage value of $6,000. Thestraight-line method is used for book purposes. Fortax purposes, the truck would be depreciated with theMACRS method over its five-year class life. Determine the annual depreciation amount to be taken overthe useful life of the hauling truck for both book andtax purposes

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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The Vermont Construction Company purchased a hauling truck on January 1, 2009 at a cost
of $35,000. The truck has a useful life of eight years
with an estimated salvage value of $6,000. The
straight-line method is used for book purposes. For
tax purposes, the truck would be depreciated with the
MACRS method over its five-year class life. Determine the annual depreciation amount to be taken over
the useful life of the hauling truck for both book and
tax purposes

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