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Answer 1 4 and 1 5 based on Activity based The company purchased a new semi - trailer truck for an acquisition cost of $
Answer and based on Activity based
The company purchased a new semitrailer truck for an acquisition cost of $ The company estimates the
truck will have a residual value of $ when they are done driving it miles.
For the past three years the company used the truck as follows:
Year Activity miles
Total
Under activity based depreciation; what is the amount of depreciation expense they would have recorded for
year $
Under activity based depreciation; what is the book value at the end of year $
$ During the first two years, the company drove the truck in year and miles in
year to deliver merchandise to its customers. The company originally purchased the truck for $ If the
truck has an estimated life of years or miles, with an estimated residual value of $ what amount
of depreciation expense should the company record in the second year using the activitybased method?
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