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.

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
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.
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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