Hale Eva Pizza has a Nissan truck that theyve owned for 6 ye

Hale Eva Pizza has a Nissan truck that they\'ve owned for 6 years and uses it for deliveries on the west side of Oahu. The original purchase price of the truck six years ago was $18,000 and Hale Eva expected to use the truck for ten years at which time they planned to sell it for $3,000. As of the last Balance Sheet date Hale Eva had reported accumulated depreciation of $8,000 on the truck using mileage as a factor in depreciation calculation. What is the current book value of the truck?

$18,000

$10,000

None of the other answers

$8,000

$15,000

Solution

Solution:

Original purchase price = $18000

Accumulated depreciation = $8000

Therefore current book value = purchase price - accumulated depreciation = $18000 - $8000 = $10,000

Hence option B is correct.