A$.$ Montello Inc. purchases a delivery truck for $$15,000.$ The truck has a salvage value of $$3,000$ and is expected to be driven for eight years. Montello uses the straight$-$line depreciation method.

Calculate the annual depreciation expense.

$$1,500$

What is the year one book value?

B$.$ Montello Inc. purchases a delivery truck for $$15,000.$ The truck has a salvage value of $$3,000$ and is expected to be driven for $120,000$ miles. Montello uses the units$-$of$-$production depreciation method and in year one it expects to use the truck for $13,000$ miles.

Calculate the year one depreciation expense.

What is the year one book value?

C$.$ Montello Inc. purchases a delivery truck for $$15,000.$ The truck has a salvage value of $$3,000$ and is expected to be driven for eight years. Montello uses the double$-$declining$-$balance depreciation method.

Calculate the year one depreciation expense.

What is the year one book value?