Problem:
Hale Eva Pizza has a Nissan truck that they've owned for 6 years and uses it for deliveries on the west side of Oahu. The original purchase price of the truck six years ago was $18,000 and Hale Eva expected to use the truck for ten years at which time they planned to sell it for $3,000. As of the last Balance Sheet date Hale Eva had reported accumulated depreciation of $8,000 on the truck using mileage as a factor in depreciation calculation.
Required:
Question: What is the current book value of the truck?
A. $15,000
B. None of the other answers
C. $10,000
D. $18,000
E. $8,000
Note: Please provide through step by step calculations.