A delivery truck has an original cost of 30000 and is deprec

A delivery truck has an original cost of $30,000 and is depreciated $4,000 annually. After 3 full years of depreciation the truck\'s book value is $18,000.

True

False

Solution

Total depreciation=(4000*3)=$12000

Hence book value after 3 years=($30000-$12000)

=$18000.

Hence the statement is True.