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A truck was purchased for $25,000. It has a six-year life and a $4,000 salvage value.?

 Using straight-line depreciation, what is the asset’s carrying value (book value) after21/2 years?

a. $8,750.

b. $12,250.

c. $14,583.

d. $16,250..

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Question added by Shahbaz Hayder , Group Head of Finance , Sharif Group of Companies
Date Posted: 2015/07/07
Shahbaz Hayder
by Shahbaz Hayder , Group Head of Finance , Sharif Group of Companies

Yes, Option D is the right answer.

lakshminarasimham mallareddi
by lakshminarasimham mallareddi , Manager Finance & Accounts , M/s. Vandana Global Limited, Raipur, Chhattisgarh

Correct answer is a. $8,750

Mark Angelo Damuag
by Mark Angelo Damuag , Financial Analyst , Evacare Management Consultancy Inc

Carrying value is d. $16,250.

Zehab Osman
by Zehab Osman , Accountant , Aldar Consultancy Co.

D-----------------------------------------

Mohammed Asim Nehal
by Mohammed Asim Nehal , M Asim Nehal & Co , Chartered Accountants

d. $16,250.                                                                     ....                                     

Tranquilino Jr Rivera
by Tranquilino Jr Rivera , General Accountant , Enany Group of Companies

Answer is D. $16,250.

$25,000-4,000=$21,000/6=$3,500 x2.5=$8,750

$25,000-8,750=$16,250

Answer is $16250 ($25000 less depreciation after2.5 yrs $8750).

mehfooz alam khan habib khan
by mehfooz alam khan habib khan , Security Incharge , Landmark Group (Emax)

Yes option D is right answer. =21000 Now per year depreciation21000/6=3500$ so total dep of2.5 years is8750$. Total value - dep.25000 -8750=16250$

Mustafa Haider
by Mustafa Haider , Assistant Manager Accounts , Kamal Hosiery Mill

as per my view answer D is correct answer..because as per  Ias16..we can use straight line method for depreciation..in this method to calculate depreciation we deduct residual value from cost ().and then divide the remaining amount on expected useful life that is6 years here and then we get1 year depreciation and by multipling that amount with no of years past we can get current year depreciation..e.g: ($-$4000)=$21000/6=$3500 (2.5years)=$8750..$8750 is accumulated depreciation for2.5 years..so after2.5 years C.V will be $16250 ().if  i made any mistake during answer i will be happy if any1 make me correct.

Syed  Muntazir
by Syed Muntazir , Accountant , AL BARAKAH DATES FACTORY LLC

Option D is the correct answer

Said Shaban
by Said Shaban , Accountant , Tri State Materials Testing

the correct answer is : B - $12,250

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