Determine the depreciation expense for the truck for the 6


The Oxnard Press Company purchased a delivery truck for $95,000 on January 2. The truck was estimated to have a $3,000 salvage value and a 4 year life. The truck was depreciated using the straight-line method. At the beginning of the third year, it was obvious that the truck's total useful life would be 6 years rather than 4, and the salvage at the end of the 6th year would be $1,000. Determine the depreciation expense for the truck for the 6 years of its life. (Hint: You have a change in estimate (useful life) at the beginning of the third year. This change will change the amount of depreciation for the last four years). You must show how you calculated all six of the numbers to receive credit.

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Accounting Basics: Determine the depreciation expense for the truck for the 6
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