Question

A truck costs $16,000 with a residual value of $1,000. It has an estimated useful life of five years. If the truck was bought on July 3, what would be the book value at the end of year 1 using straight-line rate?

Answer 1

if its 0.23 a minute then you can multiply 0.23 x 60 = 13.80     13.80 + 6.00 =19.80

Answer 2

the book value at the end of year one would be $6.00 an hour and $0.23 cents a minute using a straight line rate. :)