A Truck Costs $16,000 with a Residual Value of $1,000

question 46

Multiple Choice

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?

• A)$16,000
• B)$12,500
• C)$14,500
• D)$1,500
• E)None of these

---

Definitions:

Customer

An individual or organization that purchases goods or services from another business.

Strategic Customer Relationship

The deliberate approach to managing a company's interactions with current and future customers to improve loyalty and engagement.

Preapproach

A preparatory stage in the selling process where a salesperson researches and plans strategies to approach potential customers.

Mental Steps

The cognitive processes involved in performing a task, making a decision, or solving a problem, often involving planning, reasoning, and memory.