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What amount of depreciation should be recorded each year

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Question - Assume that Southwest Airlines owned a service truck that originally cost $100,000. When purchased at the beginning of 2009, the truck had an estimated useful life of 10 years with no residual value. At the beginning of 2014, after operating the truck for five years, Southwest determined that the remaining life was only two more years. Southwest uses the straight-line method.

1. What is the truck's net book value at the beginning of 2014?

2. Based on this change in estimate, what amount of depreciation should be recorded each year over the remaining life of the asset?

Reference no: EM133085658

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