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16. S During the first two years, the company drove the truck 103,000 in year 1 and 101,000 miles in year 2 , to deliver
16. S During the first two years, the company drove the truck 103,000 in year 1 and 101,000 miles in year 2 , to deliver merchandise to its customers. The company originally purchased the truck for $175,000. If the truck has an estimated life of 5 years or 500,000 miles, with an estimated residual value of $40,000, what amount of depreciation expense should the company record in the second year using the activity-based method? 17. $ The company purchased equipment at the beginning of Year 1 for $400,000. In Years 14, the company depreciated the asset on a straight-line basis with an estimated useful life of 10 years and a $30,000 residual value. What is the BOOK VALUE of the equipment at the end of year 4 ? Use the following to answer questions 1819 The company purchased equipment for $$400,000 on January 1 , year 1 . The equipment is expected to have a 5year life, with a residual value of $50,000 at the end of its service life. 18. S Using the 190%-declining balance method, determine depreciation expense for year 2. 19. S Using the straight-line method, determine book value at the end of year 2
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