Question 4 (1 point)Robert purchased a truck for $50,000 with a residual value of $20,000 and a life expectancy of 5 years; using straight-line depreciation, the amount of the depreciation adjustment for the first year would be: a$6,400 b$5,000 c$6,000 d$4,000
Question
Question 4 (1 point)Robert purchased a truck for 20,000 and a life expectancy of 5 years; using straight-line depreciation, the amount of the depreciation adjustment for the first year would be: a5,000 c4,000
Solution
To calculate the depreciation adjustment for the first year using straight-line depreciation, you need to follow these steps:
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Subtract the residual value from the initial cost of the truck. In this case, 20,000 = $30,000. This is the total amount that the truck will depreciate over its life expectancy.
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Divide the total depreciation by the life expectancy of the truck. In this case, 6,000.
So, the amount of the depreciation adjustment for the first year would be 6,000.
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