A company using the composite depreciation method for its fleet of trucks, cars, and campers retired one of its trucks and received cash from a salvage company. The net carrying amount of these composite asset accounts would be decreased by the
A Cash proceeds received and original cost of the truck
B Cash proceeds received
C Original cost of the truck less the cash proceeds
It declines with the use. You start out with total production possible and as you extract/use up units, the asset's service potential declines. If you had a copier that only has a service potential of 5,000 copies, the sevice potential declines with every copy made, whether it takes 1 day or 1 month.
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