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    Business math (B Company and their new delivery truck)

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    B Company purchases a new delivery truck for $20,000. the truck is expected to have a useful life of 90,000 miles before replacement, and a salvage value of $2,000. In its first year the truck was driven 22,000 miles, and a further 19,000 miles in year two. What is the depreciation expense and book value at the end of year two?

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    B Company purchases a new delivery truck for $20,000. The truck is expected to have a useful life of 90,000 miles before replacement, and a salvage value of $2,000. ...

    Solution Summary

    This solution is comprised of a detailed explanation to answer what is the depreciation expense and book value at the end of year two.

    $2.19

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