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27 January, 11:36

Warren corporation purchased a truck at a cost of $60,000. It has an estimated useful life of five years and estimated residual value of $5,000. At the beginning of year three, warren's managers concluded that the total useful life would be four years, rather than five years. There was no change in the estimated residual value. What is the amount of depreciation that warren should record for year 3 under the straight-line depreciation method?

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  1. 27 January, 14:55
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    What is the amount of depreciation that warren should record for year 3 under the straight-line depreciation method? $15500

    Explanation:

    Net Value Dep. year End Net value.

    Year 1 55000 12000 43000

    Year 2 43000 12000 31000

    Year 3 31000 15500 15500

    Year 4 15500 15500 0
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