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Charm Company purchased a new car for use in its business on January 1, 2017. It paid $30,000 for the car. Charm expects the car
Charm Company purchased a new car for use in its business on January 1, 2017. It paid $30,000 for the car. Charm expects the car to have a useful life of four years with an estimated residual value of zero. Charm expects to drive the car as follows: Year Expected Miles Driven 2017 20,000 2018 45,000 2019 40,000 2020 15,000 Total 120,000 Using the straight-line method of depreciation, calculate the following amounts for the car for each of the four years of its expected life: a. Depreciation expense b. Accumulated depreciation balance Book value C. Year Straight-Line Method Accumulated Depreciation Depreciation Expense Book Value Start 2017 2018 I 2019 2020 Using the Units-of-Production method of depreciation, calculate the following amounts for the car for each of the four years of its expected life: a. Depreciation expense b. Accumulated depreciation balance c. Book value Year Units-of-Production Method Depreciation Accumulated Expense Depreciation Book Value Start 2017 2018 2019 2020 for the car for each of the four years of its expected life: a. Depreciation expense b. Accumulated depreciation balance C. Book value Year Double-Declining-Balance Method Depreciation Accumulated Expense Depreciation Book Value Start 2017 2018 2019 2020
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