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Answer 14 and 15 based on Activity based For the past three years the company used the truck as follows: 14. Under activity based depreciation;
Answer 14 and 15 based on Activity based For the past three years the company used the truck as follows: 14. Under activity based depreciation; what is the amount of depreciation expense they would have recorded for year 3? ? 15. Under activity based depreciation; what is the book value at the end of year 3 ? $ 16. $ During the first two years, the company drove the truck 103,000 in year 1 and 101,000 miles in year 2 , to deliver merchandise to its customers. The company originally purchased the truck for $175,000. If the truck has an estimated life of 5 years or $00,000 miles, with an estimated residual value of $40,000, what amount of depreciation expense should the company record in the second year using the activity-based method? 17. $ The company purchased equipment at the beginning of Year 1 for $400,000. In Years 14, the company depreciated the asset on a straight-line basis with an estimated useful life of 10 years and a $30,000 residual value. What is the BOOK VALUE of the equipment at the end of year 4
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