question archive Cambridge Company purchased a truck on January 1, 2018
Cambridge Company purchased a truck on January 1, 2018
Subject:AccountingPrice:2.89 Bought3
Cambridge Company purchased a truck on January 1, 2018. Cambridge paid $18,000 for the truck. The truck is expected to have a $2,500 residual value and a 5-year life. Cambridge has a December 31 fiscal year end. Using the double-declining balance method, how much is the 2019 depreciation expense? (Enter only whole dollar values.) Hint: what is the year 2 depreciation amount?
Purchase A New Answer
Custom new solution created by our subject matter experts
GET A QUOTE
Answer Preview
2019 depreciation expense = $4,320
Depreciation rate = (1/5) x 2 = 40%
2018 depreciation = 18,000 x 40% = 7,200
2019 depreciation = (18,000 - 7,200) x 40% = 4,320
