Ask Question
20 March, 14:39

Zinc Corp. purchases a truck at the beginning of Year 1 at a cost of $16,500. The truck is estimated to have a useful life of 6 years and a trade-in value of $1,500. Assuming that Zinc Corp. uses the straight-line method of depreciation, the book value of the truck at the end of Year 1 is: a.$13,580. b.$12,000. c.$11,670. d.$14,000.

+4
Answers (1)
  1. 20 March, 17:55
    0
    d. 14,000

    Explanation:

    Straight line method formula: (cost - tradein value) / useful life = (16,500 - 1,500) / 6 = 2,500. So deprecciation per annum is 2,500 dollar and at the end of Year 1 our truck's value is depreciated 2,500 dollar. There remains useful life which is 15,000-2,500=12,500 and plus trade-in value which is 1,500. Therefore; 12,500+1,500=14,000
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Zinc Corp. purchases a truck at the beginning of Year 1 at a cost of $16,500. The truck is estimated to have a useful life of 6 years and a ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers