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ABC Corporation purchased a truck for $36,000. Salvage value is $6,400 and useful life is 4 years. Total expected mileage for the four years of

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ABC Corporation purchased a truck for $36,000. Salvage value is $6,400 and useful life is 4 years. Total expected mileage for the four years of operation will be 148,000 miles. In a notepad, calculate annual depreciation for the first two years using each of the following methods and then answer the questions: Stright-line Method Double-declining-balance method. Activity-based method (actual mileage Year 1: 40,000 and Year 2: 46,000) Question 1 2 pts . Stright-line Method What is the Depreciation Expense for Year 1 and Year 2 respectively? O $9.000 per year $7,400 per year O $36,000 per year O $6,400 per year Tim Atte 21 Double-declining-balance method What is the Depreciation Expense for Year 1 and Year 2 respectively? 7,400, 7,400 18,000, 9,000 9.000, 18,000 O 18,000, 27,000 Question 3 Activity-based method (actual mileage Year 1: 40,000 and Year 2: 46,000) What is the Depreciation Expense for Year 1 and Year 2. respectively? 9,200, 8,000 8,000, 9,200 O 18,000, 8,000 O 8,000, 7,400 2 pts Question 4 1 pts What is the Book value of the truck at the end of year 2 using the Straight-line method? 18,800 28,600 O 21,200 9,000 1 pts Question 5 What is the Book value of the truck at the end of year 2 using the Double- declining-balance? 21,200 28,000 O 9,000 O 18,000 Question 6 1 pts What is the Book value of the truck at the end of year 2 using the Activity- based? O 21,200 8,000 9.200 O 18,800 D Question 7 1 pts What is the adjusting journal entry at the end of year 2 using the Double- declining-balance method? O Depreciation Expense 18000 Accumulated Depreciation-Truck O Accumulated Depreciation-Truck 9000 Depreciation Expense O Accumulated Depreciation-Truck 18000 Depreciation Expense O Depreciation Expense 9000 Accumulated Depreciation-Truck 18000 9000 18000 9000

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