Depreciation - short answer questions
Explain the process of straight-line depreciation.
Explain the term 'revaluation reserve'.
Explain why firms include depreciation in their accounts.
A company purchases a new refrigerated articulated delivery vehicle for $120,000. It is to be depreciated over 4 years, when it will have a residual value (resale value) of $20,000. What will be the written down book value of the vehicle after two years of use?