(A) Corales Company acquires a delivery truck at a cost of $62,000. The truck is expected to have a salvage value of $17,000 at the end of its 10-year useful life.

Compute annual depreciation expense for the first and second years using the straight-line method.

Annual depreciation expense: Year 1 $____________. Year 2 $____________

(B) Corales Company acquires a delivery truck at a cost of $58,000. The truck is expected to have a salvage value of $6,000 at the end of its 5-year useful life. Assuming the declining-balance depreciation rate is double the straight-line rate, compute annual depreciation for the first and second years under the declining-balance method.

Annual depreciation expense: Year 1 $____________. Year 2 $____________

(C) Rosco Taxi Service uses the units-of-activity method in computing depreciation on its taxicabs. Each cab is expected to be driven 143,000 miles. Taxi no. 10 cost $40,000 and is expected to have a salvage value of $470. Taxi no. 10 is driven 33,100 miles in year 1 and 21,900 miles in year 2.

Calculate depreciation cost per mile using unit-of-activity method. (Round answer to 2 decimal places, e.g. 0.50.)

(D) On January 1, 2017, the Morgantown Company ledger shows Equipment $45,000 and Accumulated DepreciationEquipment $9,900. The depreciation resulted from using the straight-line method with a useful life of 12 years and salvage value of $2,500. On this date, the company concludes that the equipment has a remaining useful life of only 4 years with the same salvage value. Compute the revised annual depreciation.