Royal Company purchased a dump truck at the beginning of 2014 at a cost of $60,000 . The truck had an estimated life of 6 years and an estimated residual value of $24,000 . On January 1, 2016, the company made major repairs of $20,000 to the truck that extended the life 1 year. Thus, starting with 2016, the truck has a remaining life of 5 years and a new salvage value of $8,000 . Royal uses the
straight-line depreciation method. What is the book value of the truck to be reported on the balance sheet at December 31, 2016?
a. $44,000
b. $50,000
c. $56,000
d. $62,000
c
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According to the chapter, why are BP's bright green and yellow, Texaco's red, black and white, and Sunoco's blue, maroon, and yellow so strikingly different?
What will be an ideal response?
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