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a company acquired a truck for 130,000 residual value was estimated to be $20,000 the truck can be driven for 50,000 miles or a useful life of four years. Actual usage of the truck was recorded as 10,000
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41 votes
a company acquired a truck for 130,000 residual value was estimated to be $20,000 the truck can be driven for 50,000 miles or a useful life of four years. Actual usage of the truck was recorded as 10,000 miles for the first year. What is the amount of depreciation expesne for the first year calculated by the double

User MasterID
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1 Answer

13 votes
13 votes

Answer:

$65,000

Step-by-step explanation:

Depreciation Expense = 2 x SLDP x BVSLDP

where,

SLDP = 100 รท 4 = 25 %

BVSLDP = $130,000 (FIRST YEAR)

therefore,

Depreciation Expense = 2 x 25 % x $130,000 = $65,000

User Jon Ramvi
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