Bean Delivery Company purchased a new delivery truck for $58,200 on April 1, 2016. The truck is expected to have a service life of 5 years or 122,400 miles and a residual value of $4,800. The truck was driven 9,000 miles in 2016 and 10,700 miles in 2017. Bean computes depreciation to the nearest whole month.

Required:

Compute depreciation expense for 2016 and 2017 using the For interim computations, carry amounts out to two decimal places. Round your final answer to the nearest dollar. Straight-line method

2016	$
2017	$

Sum-of-the-years'-digits method

2016	$
2017	$

Double-declining-balance method

2016	$
2017	$

Activity method

2016	$
2017	$

For each method, what is the book value of the machine at the end of 2016? At the end of 2017? (Round your answers to the nearest dollar.) Straight-line method

2016	$
2017	$

Sum-of-the-years'-digits method

2016	$
2017	$

Double-declining-balance method

2016	$
2017	$

Activity method

2016	$
2017	$

The book value of the asset in the early years of the asset's service will be under an accelerated method as compared to the straight-line method. The method is appropriate when the service life of the asset is affected primarily by the amount the asset is used.