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Cambridge Company purchased a truck on January 1, 2018. Cambridge paid $19,000 for the truck. The...

Cambridge Company purchased a truck on January 1, 2018. Cambridge paid $19,000 for the truck. The truck is expected to have a $3,000 residual value and a 4-year life. Cambridge has a December 31 fiscal year end. Using the straight-line method, how much is the 2019 depreciation expense? (Enter only whole dollar values.)

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Answer #1

Depreciation for 2019= $4,000

Working

Straight line Method
A Cost $ 19,000
B Residual Value $ 3,000
C=A - B Depreciable base $ 16,000
D Life [in years left ] 4
E=C/D Annual SLM depreciation $ 4,000.00

.

Depreciation schedule-Straight line method
Year Book Value Depreciation expense Accumulated Depreciation Ending Book Value
2018 $ 19,000.00 $ 4,000.00 $ 4,000.00 $ 15,000.00
2019 $ 15,000.00 $ 4,000.00 $ 8,000.00 $ 11,000.00
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