ACCT 201 Depreciation

A truck with an estimated useful life of four years was acquired on January 1, Year 1 for $24,000. The estimated residual (salvage) value of the truck is $4,000. Compute the depreciation expense for Year 1 and Year 2. Also compute the book value of the truck at the end of Year 2.

Year 1 Year 2 Year 2 Depreciation Depreciation Book Value Expense Expense

(1) Straight Line Method ______________ __________ ____________

(2) Double-Declining Balance Method _______________ __________ ____________