(Answered) Compute annual depreciation

Finance

Problem: Howe Chemicals Company acquires a delivery truck at a cost of $31,000 on January 1, 2014. The truck is expected to have a salvage value of $4,000 at the end of its 4-year useful life.

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Question: Compute annual depreciation for the first and second years using the straight-line method. Be detailed in your response and provide examples also.

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