Question
Chambers Delivery Company purchased a new delivery truck for $51,000 on April 1, 2016. The truck is expected to have a service life of 5
Chambers Delivery Company purchased a new delivery truck for $51,000 on April 1, 2016. The truck is expected to have a service life of 5 years or 109,200 miles and a residual value of $2,760. The truck was driven 11,200 miles in 2016 and 12,300 miles in 2017. Chambers 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 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 $
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 $
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started