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During the third year, Delta
Company realizes that the truck is only going to last a total of5 years. The truck is depreciated on the
straight-line basis and has no estimated salvage value.
At year3 the depreciation expense of the truck is:
a/Twenty thousand
b/Nine thousand .
c/Eighteen thousand
d/Twenty seven thousand.
C. Eighteen thousand is the answer.
18 K
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c. 18K.........................................................................................
c/Eighteen thousand
Yes, Option C is the right answer.
The truck has depreciated far more than initially expected and will have depreciated $54,000 after 5 years to salvage value of $9,000.
c Eighteen thousand
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