On March 31, 2018, Sky Trucking purchased a used Kenworth truck at a cost of...
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Accounting
On March 31, 2018, Sky Trucking purchased a used Kenworth truck at a cost of $52,000. Sky Trucking expects to drive the truck for nine years and to have a residual value of $7,000. Compute Sky Trucking's depreciation expense on the truck for year 1 using the straight-line method. Start by determining the formula needed to calculate straight-line depreciation on the truck through December 31, 2018. Straight-line depreciation Book value x [(1 / Useful life in miles) x 2] x (Months in use / 12 months) [(Cost - Residual value) / Useful life in miles] x Miles driven [(Cost - Residual value) / Useful life in years] (Months in use / 12 months) (Cost / Useful life in years) (Months in use / 12 months)
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