DEPRECIATION METHODS Quick-as-Lightning, a delivery service, purchased a new delivery truck for $40,000 on January 1, 2009.

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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?

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Related Book For  book-img-for-question

Cornerstones Of Financial Accounting Current Trends Update

ISBN: 9781111527952

1st Edition

Authors: Jay Rich , Jeff Jones, Maryanne Mowen , Don Hansen

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