If a delivery truck's original cost is $12,000.00, the estimated salvage value is $2,000.00, and useful life is 10 years, using straight-line depreciation of $8,500.00 results in what?:confused:

Do to the policy here, no one can help you until you attempt the problem. We are not here to do your homework for you (if it is a homework problem); in turn we will help you LEARN how to solve the problems.

Quote:

---

Originally Posted by Miss Smiley1

If a delivery truck's original cost is $12,000.00, the estimated salvage value is $2,000.00, and useful life is 10 years, using straight-line depreciation of $8,500.00 results in what?:confused:

---

purchase price of asset – approximate salvage value
-------------------------- (divided by) --------------------------
estimated useful life of asset

Hmm, that was kind of lazy answer but I will go with it :P. I am kind of confused by the question though. What I got from the question is that it told you how much depreciated already (8,500) and what's to know how much time has passed. If this is right it would be 8.5 years passing. Being that using the forumla for depreciation (the one that you posted is right btw).

(12000 - 2000)= (10000 / 10) = 1000 per year

8500 depreciation that has happened / 1,000 depreciation per year = 8.5 years have passed for $8,500 of depreciation to accumulate.

use this formula to figure it out
(cost-salvage value) = Depreciation expense
useful life

Superfly is correct.

However, if you are using the half year rule, a full 9 accounting periods might have passed as well.