Question
Asked Jan 26, 2019
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Flint Company acquires a delivery truck at a cost of $48,000. The truck is expected to have a salvage value of $11,000 at the end of its 10-year useful life.

Compute annual depreciation expense for the first and second years using the straight-line method.

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Expert Answer

Step 1

Step1: Calculating the annual value of depreciation expenses for the first year using the straight-line method. We have,

The formula of depreciation expenses using the straight line method is as follows:

Depreciation expenses = (Original cost of truck – Salvage Value) / Expected useful life of the asset

Here,

Original cost of truck = $ 48,000

Salvage Value = $ 11,...

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