On January 1, 2020, Done Inc. purchased a Truck for $64,000. The estimated life of the truck was & years, with an estimated residual value of $4,000 Compute the Depreciation depreciation, and Book value on this equipment for the years ending on December 31, 2020. Using the following method: Straight- line Method 2020 O Straight line Method 2020 Straight- line Method 2020 Computations O Straight- line Method 2020 O Straight line Method 2020 Computations $(64,000+4,000y8 Computations $64,000/8 Computations $(64,000-4,000 y8 Computations $(64.000-8.00014 Depreciation Expense Depreciation Expense $8.500 Depreciation Expense $8,000 Depreciation Expense $7,500 Depreciation Expense $14.000 Accumulated Depreciation Accumulated Depreciation $6,500 Accumulated Depreciation $8,000 Accumulated Depreciation $7,500 Accumulated Depreciation $14.000 Book Value Book Value $55,500 Book Value $56,000 Book Value $56,500 Book Value $50,000

The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating exp…

In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset…