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Calloway Shoes Purchased a Delivery Truck on September 30, 2013

Question 105

Multiple Choice

Calloway Shoes purchased a delivery truck on September 30, 2013, for $32,000. The estimated useful life of the truck is 10 years with no residual value. After five years, the refrigeration unit will need to be replaced. The $8,000 cost of the unit is included in the cost of the truck. Calloway uses the straight-line depreciation method. Depreciation for 2013 under U.S. GAAP and International Financial Reporting Standards (IFRS) , respectively, is: Calloway Shoes purchased a delivery truck on September 30, 2013, for $32,000. The estimated useful life of the truck is 10 years with no residual value. After five years, the refrigeration unit will need to be replaced. The $8,000 cost of the unit is included in the cost of the truck. Calloway uses the straight-line depreciation method. Depreciation for 2013 under U.S. GAAP and International Financial Reporting Standards (IFRS) , respectively, is: A) Option a B) Option b C) Option c D) Option d


A) Option a
B) Option b
C) Option c
D) Option d

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