24. Crestview Estates purchased a tractor on January 1, 2018, for $65,000. The t

Question

24. Crestview Estates purchased a tractor on January 1, 2018, for $65,000. The tractor's useful life is estimated to be 10 years and has a residual value of $5,000. If Crestview uses the straight-line method of depreciation what is the amount of depreciation expense and the ending book value on December 31, 2018? A. $6,500 depreciation expense and S58,500 book value B. $6,000 depreciation expense and $54,000 book value C. $6,500 depreciation expense and $65,000 book value D. $6,000 depreciation expense and $59,000 book value

Explanation / Answer

Option D is correct.

Depreciation = 65000 - 5000 / 10

= $6000

Book value = $65000 - $ 6000

= $59000

Related Questions

Navigate

• Browse (All)
• Browse 2
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.