Augie Corporation purchased a truck at a cost of $64,800. It has an estimated useful life of five years and estimated residual value of $5,800. At the beginning ofyear three, Augie'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 Augie should record for year 3 under the straight-line depreciation method?Multiple ChoiceOOO$11,800.$16,700.$17,700.$8,850.

Depreciation is charged every year, based on the estimated useful life and the residual value of the…

Answered: year three, Augie's managers concluded…

year three, Augie's managers concluded that the total useful life would be What is the amount of depreciation that Augie should record for year 3 under the straight-line depreciation method?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter11: Depreciation, Depletion, Impairment, And Disposal

Section: Chapter Questions

Problem 2RE: Akron Incorporated purchased an asset at the beginning of Year 1 for 375,000. The estimated residual...

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Question

Augie Corporation purchased a truck at a cost of $64,800. It has an estimated useful life of five years and estimated residual value of $5,800. At the beginning of
year three, Augie'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 Augie should record for year 3 under the straight-line depreciation method?
Multiple Choice
O
O
O
$11,800.
$16,700.
$17,700.
$8,850.

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