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    kamikah25's Avatar
    kamikah25 Posts: 4, Reputation: 1
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    #1

    Mar 4, 2012, 07:20 PM
    Accounting
    A company purchased a new truck at a cost of $42,000 on July 1, 2008. The truck is estimated to have a useful life of 6 years and a salvage value of $3,000. The company uses the straight-line method of depreciation. How much depreciation expense will be recorded for the truck for the year ended December 31, 2008?
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
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    #2

    Mar 4, 2012, 07:37 PM
    First you need to get the depreciable base, which is: Cost minus salvage value, then divide this number by the number of years useful life to get your depreciation per year. Since your depreciation is for a partial year you need to take the depreciation per year times number of months in the period divided by 12 months to get your depreciation for the period.
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