Big Trucking Company has purchased a $100,000 dump truck that has a useful life of 8 years. After the first year of use, the market value of the dump truck falls to $70,000. If the highest one year return available is 10 percent, what is the one year return from selling the dump truck?
A.$60,000
B.$70,000
C.$10,000
D.$7,000
The one year return from selling the dump truck = $70000x10%= 70000x0.10= $7000
Option d is correct.
Big Trucking Company has purchased a $100,000 dump truck that has a useful life of 8...