On January 1,2012,a Company Buys a Truck for $42,000 Cash $\quad$

question 74

Essay

On January 1,2012,a company buys a truck for $42,000 cash.It has estimated residual value of $2,000,and an estimated life of 4 years,or 200,000 miles.Assume the company uses straight-line depreciation.Please complete the depreciation schedule below. $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$$\text { Depreciation for the Year }$
$\begin{array}{|c|c|c|c|c|c|c}\hline \text { Date } & \text { Asset Cost } & \begin{array}{c}\text { Depreciable } \\\text { Cost }\end{array} & \begin{array}{c}\text { Depreciation } \\\text { Rate }\end{array} & \begin{array}{c}\text { Depreciation } \\\text { Expense }\end{array} & \begin{array}{c}\text { Accumulated } \\\text { Depreciation }\end{array} & \begin{array}{c}\text { Book } \\\text { Value }\end{array} \\\hline 1-1-2012 \\\hline 12-31-2012 \\\hline 12-31-2013 \\\hline 12-31-2014 \\\hline 12-31-2015 \\\hline\end{array}$

---

Definitions:

Federal Reserve

The central banking system of the United States, which regulates the U.S. monetary and financial system.

Clearing of Checks

The process by which banks exchange checks or drafts drawn on each other and settle the differences to facilitate the actual transaction the check represents.

Currency in Circulation

Refers to the physical money, including coins and paper money, that is actively used and exchanged in an economy.

Bank Checking Accounts

Banking services that allow customers to deposit, withdraw, and write checks against funds they have in the account.