Answer:
$7520.55
Step-by-step explanation:
Cost of truck = $8000
Residual value = $1000
Estimated useful life = 7 years
Depreciation = (cost of asset - salvage value) / useful life
Depreciation = (8000 - 1000) / 7
Depreciation = 7000 / 7
Depreciation = $1000
Truck was purchased on July 9, Therefore, Depreciation by the end of year one will be;
Number of days between July 9 and year end = 175 days
Daily Depreciation = $1000 / 365 = $2.739
Total Depreciation by year end = (daily Depreciation * 175 days) = $479.45.
Book value at the end of year 1 = (8000 - 479.45)
= $7520.55
Answer:
The answer is "$7,500".
Step-by-step explanation:
Formula:
In the month of July-December the depreciation:
[tex]\frac{\text{Cost-Residual}}{\text{Useful life}}\times \frac{6}{12} \\[/tex]
Cost-Residual= costs -residual value
Given:
Cost-Residual = $8, 000 - $ 1,00
= $7,000
Useful life= 7 years
Put the value in the above-given formula:
[tex]=\frac{7 000}{7}\times \frac{6}{12}\\\\= 1 000\times \frac{1}{2}\\\\= 5 00\\[/tex]
Therefore, the book value on point at the end of one year is:
= $8,000 -$ 500
= $7,500
