A company acquired a truck for $79,000 at the beginning of the fiscal year. It has a useful life of 5 years and a residual value of $9,000. The company uses the straight-line method of depreciation. After owning the truck for two years, the company sold it for $34,000. (a) Determine depreciation expense for each of the first two years, and (b) determine the gain or loss resulting from the sale.© BrainMass Inc. brainmass.com October 2, 2020, 2:34 am ad1c9bdddf
The solution does a great job of answering the question regarding depreciation expense. The solution is brief and concise and very easy to follow along. All the steps are clearly shown. It can be easily understood by anyone with a basic understanding of the topic. Overall, an excellent solution.