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Problem 1: Hsu Company purchased a truck on May 31, 2014 for $70,000. The equipment has an estimated useful life of five years. What amount will appear on Hsu Company's balance sheet for total accumulated depreciation at May 31, 2017?
a.$14,000
b.$28,000
c.$35,000
d.$42,000
Problem 2: Lucky Company purchased a truck at a cost of $12,000 in 2012. As of January 1, 2017, depreciation of $10,000 had been recorded on this asset. Depreciation expense for 2017 is $2,000. After the adjustments are recorded and posted at December 31, 2017, what is the carrying value of the truck?
a.$12,000
b.$5,500
c.$2,000
d.$0
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