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Hopkins Company purchased a truck for $39,000 on May 1, Year 1, intending to use...

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Accounting

Hopkins Company purchased a truck for $39,000 on May 1, Year 1, intending to use the truck for 7 years starting on the purchase date. The firm uses the straight-line depreciation method and estimated the salvage [residual] value of the truck at $15,000 at the time of the intended sale in Year 8. The firms fiscal year ends on December 31. After depreciating the truck using the factors stated above, on January 1, Year 3 the firm's management elected to change the estimated salvage value to $19,000. On January 1, Year 3, management also changed the trucks estimated total useful life to 5 years that started on the date the truck was placed in service. When doing calculations, if you use decimals you are to round to the nearest one-hundredth [.01]. Enter your answer in whole numbers, without '$' sign and without commas. Using the straight-line depreciation method, calculate the Depreciation Expense for Year 1. Years 1 and 2 occur before any changes in estimates are made by management.

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