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Cambridge Company purchased a truck on January 1, 2018. Cambridge paid $24,000 for the truck. The...

Cambridge Company purchased a truck on January 1, 2018. Cambridge paid $24,000 for the truck. The truck is expected to have a $4,000 residual value and a 7-year life. Cambridge has a December 31 fiscal year end. Using the straight-line method, how much is the 2019 depreciation expense?

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Answer #1
Straight Line depreciation expense = (Cost - Salvage Value)/Useful Life
= (24000-4000)/7
= $ 2,857.14
Under, Straight line depreciation method,depreciation expense is same for all years.
So, depreciation expense for 2019 is $ 2,857.14
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