申論題

3. (9 分)
DDD Company's net incomes for the past three years are presented below: 
During the 2019 year-end audit, the following transaction comes to your attention: DDD bought a truck on January 1, 2015 for $196,000 with a $16,000 estimated residual value and a six-year life. The company debited an expense account and credited cash on the purchase date for the entire cost of the asset. (DDD uses straight-line method for depreciation.)
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