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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?

 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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