Lena Horn bought a Toyota Tundra on January 1 for $21,500 with an estimated life of 4 years. The residual value of the truck is $4,300. Assume a straight-line method of depreciation.
a. What will be the book value of the truck at the end of year 4?
b. If the Tundra was bought the first year on April 12, how much depreciation would be taken the first year?
