DEPRECIATION METHODS Quick-as-Lightning, a delivery service, purchased a new delivery truck for $40,000 on January 1, 2009.
Question:
DEPRECIATION METHODS Quick-as-Lightning, a delivery service, purchased a new delivery truck for $40,000 on January 1, 2009. The truck is expected to have a useful life of ten years or 150,000 miles and an expected residual value of $3,000. The truck was driven 15,000 miles in 2009 and 13,000 miles in 2010.
Required:
. Compute depreciation expense for 2009 and 2010 using the:
a. straight-line method
b. double-declining-balance method
c. units-of-production method
. For each method, what is the book value of the machine at the end 2009? At the end of 2010?
Exercise
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Related Book For
Cornerstones Of Financial Accounting Current Trends Update
ISBN: 9781111527952
1st Edition
Authors: Jay Rich , Jeff Jones, Maryanne Mowen , Don Hansen
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