32.6k views
5 votes
On January 1, Year 1, Marino Moving Company paid $48,000 cash to purchase a truck. The truck was expected to have a four year useful life and an $8,000 salvage value. If Marino uses the straight-line method, the amount of depreciation expense recognized on the Year 2 income statement is ________.

a- $4,000.
b- $6,000.
c- $12,000.
d- $24,000.

User Ngodup
by
7.5k points

1 Answer

2 votes

Answer:

$10,000

Step-by-step explanation:

The computation of the depreciation expense is shown below:

= (Purchase value of a truck - salvage value) ÷ (expected useful life)

= ($48,000 - $8,000) ÷ (4 years)

= ($40,000) ÷ (4 years)

= $10,000

The depreciation expense in this method is the same for the entire remaining useful life

Note: This is the answer and the same is not provided in the given options

User Konstantin Petrov
by
8.2k points
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

9.4m questions

12.2m answers

Categories