Examlex

Solved

Royal Company Purchased a Dump Truck at the Beginning of 2014

question 101

Multiple Choice

Royal Company purchased a dump truck at the beginning of 2014 at a cost of $60,000.The truck had an estimated life of 6 years and an estimated residual value of $24,000.On January 1, 2016, the company made major repairs of $20,000 to the truck that extended the life 1 year.Thus, starting with 2016, the truck has a remaining life of 5 years and a new salvage value of $8,000.Royal uses the straight-line depreciation method.What is the book value of the truck to be reported on the balance sheet at December 31, 2016?


Definitions:

Uncomfortable

A feeling of physical or mental discomfort, often due to adverse conditions or ill-fitting situations.

AIDET

A communication framework used in healthcare standing for Acknowledge, Introduce, Duration, Explanation, and Thank You, aimed at improving interaction with patients.

Procedures

Established methods or actions for doing something, which in a medical context, could involve diagnostic or therapeutic actions.

Positive Attitude

A mental state involving optimistic and constructive thoughts and feelings that can influence one's well-being and outcomes.

Related Questions