Chapter 6 Question 4

Barefoot Industrial acquired a new delivery truck at the beginning of its current fiscal year. The truck cost $21,000 and has an estimated useful life of four years and an estimated salvage value of $4,200.

Required:

a-1.Calculate depreciation expense for each year of the truck's life using Straight-line depreciation.

Depreciation expense ____________per year

a-2.Calculate depreciation expense for each year of the truck's life using Double-declining-balance depreciation.

Depreciation expense

Year 1-4

b.Calculate the truck's net book value at the end of its third year of use under each depreciationmethod.

Straighline Depreciation

Net Book Value ______________

Double decline balance Depreciation

Net Book Value______________