Regal Company acquired a delivery truck on 2009 January 2, for $107,200. The truck had an estimated salvage value of $4,800 and an estimated useful life of eight years. At the beginning of 2009, a revised estimate shows that the truck has a remaining useful life of six years. The estimated salvage value changed to $1,600. Compute the depreciation charge for 2009 and the revised depreciation charge for 2009 using the straight-line method.
Regal Company acquired a delivery truck on 2009 January 2, for $107,200. The truck had an estimated salvage value of $4,800 and an estimated useful life of eight years. At the beginning of 2009, a revised estimate shows that the truck has a remaining useful life of six years. The estimated salvage value changed to $1,600. Compute the depreciation charge for 2009 and the revised depreciation charge for 2009 using the straight-line method.
Chapter11: Long-term Assets
Section: Chapter Questions
Problem 4EB: Montello Inc. purchases a delivery truck for $25,000. The truck has a salvage value of $6,000 and is...
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![Regal Company acquired a delivery truck on 2009 January 2, for $107,200. The truck
had an estimated salvage value of $4,800 and an estimated useful life of eight years.
At the beginning of 2009, a revised estimate shows that the truck has a remaining
useful life of six years. The estimated salvage value changed to $1,600.
Compute the depreciation charge for 2009 and the revised depreciation charge for
2009 using the straight-line method.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6f014a96-9315-49d1-899a-681c23f4862f%2F945b051e-c65a-444a-b3cb-c1fdebce7014%2F2s566pi_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Regal Company acquired a delivery truck on 2009 January 2, for $107,200. The truck
had an estimated salvage value of $4,800 and an estimated useful life of eight years.
At the beginning of 2009, a revised estimate shows that the truck has a remaining
useful life of six years. The estimated salvage value changed to $1,600.
Compute the depreciation charge for 2009 and the revised depreciation charge for
2009 using the straight-line method.
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