Question

On October 1, 2019, Illini Company purchased a truck for $42,000. The truck is expected to have a salvage value of $3,000 at the end of its 3-year useful life. If the company uses the straight-line method, the depreciation expense recorded during the year ending December 31, 2019, will be:

Answer 1

Answer: $13,000

Step-by-step explanation:

Depreciation expense using the straight line depreciation method :

(Actual cost - Salvage value) / useful life

($42,000 - $3,000) / 3 =$13,000