A Truck Costs $8,000 with a Residual Value of $1,000

question 67

Multiple Choice

A truck costs $8,000 with a residual value of $1,000. The truck is expected to have a useful life of 70,000 miles. Assuming the truck is driven 15,000 miles the first year, the depreciation expense would be:

• A)$1,714
• B)$1,500
• C)$1,174
• D)$1,505
• E)None of these

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Definitions:

Realistic Thinking

An approach to thought that considers facts and the actual state of affairs rather than what might be wished or feared.

Optimistic Thinking

The practice of focusing on the positive aspects of situations or expectations of favorable outcomes.

Open-Mindedness

The willingness to consider new ideas, perspectives, and possibilities without prejudging them.

Personal Projects

Individual pursuits or tasks that a person considers significant and undertakes to achieve personal goals.