aight-Line, Declining-Balance, and Sum-of-the-Years-Digits Methods ght truck is purchased on January 1 at a cost of $36,720. It is expected to serve for eight years and have a salvage value of $4,080. Calculate the depreciation expense the first and third years of the truck's life using the following methods. If required, round your answers to the nearest cent Depreciation Expense Year 1 Year 3 Straight-line Double-declining-balance Sum-of-the-years -digits 3,660 X 2,833 X 3,660 X 7,870 X 6,1001 x Feedback Check My Work Cost -Salvage Value Depreciable Cost Depreciable Cost / Years of Life = Depreciation Expense Refer to Figure 18-2 in the text. Double means double the straight-line rate. Declining balance means that the rate is multiplied by the book value (not depreciable cost) at the beginning of each year. This amount is declining each year Refer to Figure 18-2 in the text. Fraction used in the calculation: For example (not same as in this exercise) Units-of-Production Method A light car is purchased on January 1 at a cost of $25,600. It is expected to senve for eight years and have a salvage value of $3,000. t is expected to be used for 96,000 miles over its eight year usefu lie. Using the units-of-production method, calculate the depreciation expense for the first and third years of use if the car is driven 20,000 miles in year 1 and 18,000 miles in year 3. Round interim calculations to two decimal places. Depreciation Expense Year 1 3,660 X Year 3 3,660 | X Feedback Check My Work Step 1: Depreciation per Unit (Cost- Salvage Value) Estimated Useful Lite in Units Step 2: Annual Depreciation- Depr per un#x Number of Units Produced or Consumed this Year Refer to Figure 18-2 in the text