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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: $3,250 $13,000 $29,000 $38,250

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segehood

Answer:

$3250

Explanation:

Given that

Purchase price = 42000

Salvage value = 3000

Useful life = 3 years

Recall that using straight line method

Depreciation value per year = (purchase price - salvage value) ÷ useful life

Thus,

= 42000 - 3000 ÷ 3

= 39000 ÷ 3

= $13000.

By December 31, 2019, only 3 month of usage has gone

Thus, value of depreciation by Dec 31

= 3/12 × 13000

= 0.25 × 13000

= $3250

Depreciation value recorded by year end is $3250

fichoh

Answer: $3250

Explanation:

The straight line Depreciation formula is given by;

(Cost - salvage value) ÷ Number of useful years

Cost = $42,000

Salvage value = $3000

Nunver of useful years = 3

Depreciation = (Cost - salvage value) ÷ Number of useful years

Depreciation = ($42,000 - $3000) ÷ 3

Depreciation = $39,000 ÷ 3

Depreciation = $13,000

Depreciation between (October 1 —31 December)

(3÷12) × 13000

0.25 × 13000

$3,250

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