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Blue Spruce Corp. acquires a delivery truck at a cost of $43,000. The truck is expected...

Blue Spruce Corp. acquires a delivery truck at a cost of $43,000. The truck is expected to have a salvage value of $15,000 at the end of its 5-year useful life. Compute annual depreciation expense for the first and second years using the straight-line method. Year 1 Year 2 Annual depreciation expense $enter a dollar amount $enter a dollar amount

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Answer #1
Year 1 Year 2
Annual depreciation under straight-line method $ 5,600.00 $               5,600.00
Explanation
Straight Line Depreciation per year
(Cost - Salvage Value) / Useful Life = Annual Depreciation
(43,000 - 15,000) / 5 = $               5,600.00
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