Total cost of truck: 10200 with the useful life of 5 years (or 60 months) and salvage value is not given (therefore, assumed to be Nil)
Thus, Depreciable cost = Cost of assets - Salvage value = 10200-0 = 10200.
Now, Depreciable cost is depreciated among 60 months. Therefore, depreciation expenses per month is computed as under:
Deprecciation per month = Depreciable cost / Number of months = 10200 /60 = $ 170.
As per Question, Accumulated depreciation balance is $ 2040 which states the total depreciation accumulated from date of purchase to till date i.e. Jan 31, 2017.
Therefore, Assets has been used for =Accumulated depreciation balance / Monthle depreciation = 2040/170 = 12 months.
Sorry about that. What wasn’t helpful?