Carpenter Transport Company Purchased a Truck at a Cost of $60,000

question 83

Essay

Carpenter Transport Company purchased a truck at a cost of $60,000 on January 1,2013.The truck has an estimated useful life of nine years and a $15,000 residual value.
A. How much depreciation expense should be reported for the year 2017 ?

B. What is the total amount of accumulated depreciation at December 31,2017 ?

C. Show how the truck and the related accumulated depreciation would appear on Carpenter's December 31,2017, balance sheet immediately after the adjustments are recorded and posted.

D. Is the amount on the balance sheet what the truck could probably be sold for on December 31,2017? What principle governs?

E. How much depreciation expense should be reported for the year 2018 ?

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