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 amount should be recorded as depreciation expense each year starting in 2016?
a. $6,000
b. $12,000
c. $13,600
d. $14,400
b
You might also like to view...
Products must be carefully analyzed in terms of financial considerations in the _____ stage of the new product development process.
A. business analysis B. idea accumulation C. product testing D. development of the physical product
A controlling investment is defined as owning what percent of the stock of another company?
A) More than 50 percent B) 100 percent C) More than 75 percent D) 75 percent
Which of the following is NOT considered front matter of a formal report?
A. title page B. introduction C. executive summary D. table of contents
Discharge of a surety occurs: A) if the creditor extends the time of the debt with the consent of the surety
B) if the creditor extends the time of the debt without the consent of the surety for a consideration. C) in case of any reduction in the rate of interest. D) in the case of return of collateral security to the debtor.