Determine the book value of the fleet at end of year three


Problem

To meet increased delivery demands, Mary Moo Dairy just purchased 15 new delivery trucks. Each truck cost $30,000 and has an expected life of 4 years. The trucks can each be sold for $8000 after 4 years. Using MACRS depreciation

(a) Determine the depreciation allowance for Year 2 for the fleet, and

(b) Determine the book value of the fleet at the end of Year 3.

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Microeconomics: Determine the book value of the fleet at end of year three
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