Homework Answers
a) Annual depreciation charges = (1,900,000 - 600,000) / 10 = $130,000
b)
| End of the year | Depreciation Amount ($) | Book Value($) = Previous year book value - Current year depreciation amount |
| 0 | 1900000 | |
| 1 | 130000 | 1770000 |
| 2 | 130000 | 1640000 |
| 3 | 130000 | 1510000 |
| 4 | 130000 | 1380000 |
| 5 | 130000 | 1250000 |
| 6 | 130000 | 1120000 |
| 7 | 130000 | 990000 |
| 8 | 130000 | 860000 |
| 9 | 130000 | 730000 |
| 10 | 130000 | 600000 |
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Next Journalize the purchase of the truck, the first year's
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