Royal Company Purchased a Dump Truck at the Beginning of 2012

Multiple Choice

Royal Company purchased a dump truck at the beginning of 2012 at a cost of $50,000.The truck had an estimated life of 5 years and an estimated residual value of $20,000.On January 1,2014,the company made major repairs of $30,000 to the truck that extended the life 3 years.Thus,starting with 2014,the truck has a remaining life of 5 years and a new salvage value of $8,000.Royal uses the straight-line depreciation method What is the book value of the truck to be reported on the balance sheet at December 31,2014?

A) $44,000
B) $50,000
C) $56,000
D) $62,000