question jang purchased a moving truck for the business. he paid $40,000 for the truck. its salvage value is…

question jang purchased a moving truck for the business. he paid $40,000 for the truck. its salvage value is $8,500. select the correct answer from each drop - down menu. the depreciation expense of the moving truck for a useful life of 10 years is if the trucks useful life were 15 years, the depreciation expense would come to submit self - evaluation

question jang purchased a moving truck for the business. he paid $40,000 for the truck. its salvage value is $8,500. select the correct answer from each drop - down menu. the depreciation expense of the moving truck for a useful life of 10 years is if the trucks useful life were 15 years, the depreciation expense would come to submit self - evaluation

Answer

Explanation:

Step1: Recall depreciation formula

Depreciation expense = $\frac{Cost - Salvage\ value}{Useful\ life}$

Step2: Calculate for 10 - year useful life

Cost = $40000$, Salvage value = $8500$, Useful life = 10. Depreciation expense = $\frac{40000 - 8500}{10}=\frac{31500}{10}=3150$

Step3: Calculate for 15 - year useful life

Useful life = 15. Depreciation expense = $\frac{40000 - 8500}{15}=\frac{31500}{15}=2100$

Answer:

For a useful life of 10 years: $3150$; If the truck's useful life were 15 years, the depreciation expense would come to $2100$