XYZ Company purchased a refrigerated delivery truck for $65,000 on January 1, 2015. The plan is to use the truck for 5 years and then replace it. At the end of its useful life, the truck is expected to have a salvage value of $10,000. The fiscal year ends December 31.
Straight line depreciation methodFormulaDepreciable amount /no. of yearsDepreciable amount = initial cost – salvage valueDepreciable amount =$(65,000- 10,000)Years Depreciationcharge…
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