Crawford Trucking plans to dispose of two trucks in 2022. They sell the first truck on...
Crawford Trucking plans to dispose of two trucks in 2022. They sell the first truck on January 2 and the second truck on July 9. If the end of their fiscal year is December 31, how will the calculation of book value differ for these two vehicles?
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A : They will need to add a partial year of depreciation from the book value of the first truck but not the second truck.
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B : They will need to add a partial year of depreciation from the book value of the second truck but not the first truck.
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C : They will need to subtract a partial year of depreciation from the book value of the second truck but not the first truck.
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D : They will need to subtract a partial year of depreciation from the book value of the first truck but not the second truck.
Homework Answers
| Option C is the answer | |
|
As the first truck is sold on January 2, there's no need to calculate and deduct the partial depreciation. And for second truck which will be sold on July 9, partial depreciation is calculated upto July 9 and deducted from book value |
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