0,00V 33,266 3. Conceptual Connection: If Quick-as-Lightning used an 8 year useful life or 100,000 miles and a residual value of $1,000, what would be: (a) Depreciation expense. (Do not round intermediate calculations. Round your answers to the nearest whole dollar) a. Straight-line method: $ 4,875 2019 2020 b. Double-declining-balance method $ 10,000 7,500 C. Units-of-production method 3,900 x 3,198 x (b) Book value. Round your answers to the nearest whole dollar. 2019 2020 a. Straight-line method 35,125 $ 30,250 22,500 b. Double-declining-balance method 30,000 36,100 $ $ C. Units-of-production method X 32,902 X Foodbach I Chook My Work book 1a. Straight-line depreciation allocates the depreciable cost over the useful life of the asset. 1b. Double-declining balance is an accelerated method of depreciation in which depreciation expense equals twice the straight line rate multiple times the 1c. Under the units-of-production method: Depreciation expense is the depreciation cost per unit multiplied times the actual usage of the asset 2. Book value - Cost - Accumulated Depreciation 3. Calculate depreciation based on revised estimates and compare to the previously computed amounts Exercise 7-50 (Algorithmic) Depreciation Methods Quick-as-Lightning, a delivery service, purchased a new delivery truck for $40,000 on January 1, 2019. The truck is expected to have miles and an expected residual value of $3,000. The truck was driven 15,000 miles in 2019 and 12,300 miles in 2020 useful We of ten years or 150.000 Required: 1. Compute depreciation expense for 2019 and 2020 using the a. Straight-line method. Depreciation expense: 3,700 per year b. Double-declining balance method Depreciation Expense $ 3,000 2019 2020 6,400 C. Units-of-production method. (Do not round intermediate calculations required, round your answers to the nearest whole dollar) 2019 Depreciation Expense 3,700 3,034 2020 2. For each method, what is the book value of the machine at the end of 2019? At the end of 20207 Round your answers to the nearest dollar 2019 2020 2. Straight-line method 36,300 $ 32,600 . Double-dedining balance method $ 32,000 25,600 Units-of-production method 36,300 $ 33,266