On October 1, 2015, Illini Company purchased a truck for $42,000. The truck is expected to...

On October 1, 2015, 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, 2015, will be _____.

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Under Straight line depreciation method the asset is depreciated over the life of the asset evenly after reducing the salvage value

Cell Reference	Particulars	Amount
A	Purchase Price of Truck	42,000
B	Salvage value	3,000
C=A-B	Depreciable value of truck	39,000
D	life of truck ( in years)	3
E=C/D	Depreciation per year	13,000
F	No of months ( in Months)	12
G=E/F	Depreciation per month	1,083
H	No of months from the date of purchase to December 31, 2015	3
I=G*H	Depreciation for December 31, 2015	3,250

ekkarill92 answered 2 years ago

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