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1 ) On January 1 , 2 0 1 2 , ABC Company purchased a truck for $ 1 5 , 0 0 0 .

1) On January 1,2012, ABC Company purchased a truck for $15,000. It has a 5-years useful life or 50,000 hours of operation, and a residual value of $5,000. The truck was used 10,000 hours in 2012 and 15,000 hours in 2013.
a.If the company uses the double-declining-balance method, what will be the book value and total depreciation expense of the truck at the end of its useful life? Calculate the depreciation expense for the year ended December 31,2013.
If the company uses the units of production method, what is the depreciation rate per hour for the truck?
Calculate the depreciation expense and book value for the year ended December 31,2012.
If the company uses the straight-line depreciation method, record the journal entry for the depreciation expense in 2012. On January 1,2016, the company sold the truck for $6,000. How much gain or loss will be reported on the income statement for the sale of the truck?
If the company uses the straight-line depreciation method. On January 1,2014, the company made major repairs of $19,000 to the truck that extended the life 3 years and a new residual value of $6,000. What amount should be recorded as depreciation expense each year starting in 2014?

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