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4 August, 03:16

Cullumber Company purchased a delivery truck for $40,000 on July 1, 2022. The truck has an expected salvage value of $6,000, and is expected to be driven 100,000 miles over its estimated useful life of 8 years. Actual miles driven were 15,000 in 2022 and 12,000 in 2023. Cullumber uses the straight-line method of depreciation. (a) Compute depreciation expense for 2022 and 2023. Depreciation Expense 2022 2023 Straight-line method

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  1. 4 August, 05:03
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    Depreciation Expense

    2022: $ 4,250

    2023: $ 4,250

    Explanation:

    Straight line Depreciation Method is the Depreciation Method that charges the same amount of depreciation over the useful life of an asset.

    Depreciation = (Cost - Salvage Value) / Useful Life

    = ($40,000 - $6,000) / 8 years

    = $ 4,250

    Depreciation Expense

    2022: $ 4,250

    2023: $ 4,250
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