Question
Cheers Delivery Company purchased a new delivery truck for $66,000 on April 1, 2019. The truck is expected to have a service life of 10
Cheers Delivery Company purchased a new delivery truck for $66,000 on April 1, 2019. The truck is expected to have a service life of 10 years or 120,000 miles and a residual value of $3,000. The truck was driven 12,000 miles in 2019 and 14,000 miles in 2020. Cheers computes depreciation expense to the nearest whole month. Required: Compute depreciation expense for 2019 and 2020 using the following methods: (Round your answers to the nearest dollar.) Straight-line method 2019 $ fill in the blank 1 61,275 2020 $ fill in the blank 2 59,700 Sum-of-the-years'-digits method 2019 $ fill in the blank 3 2020 $ fill in the blank 4 Double-declining-balance method 2019 $ fill in the blank 5 2020 $ fill in the blank 6 Activity method 2019 $ fill in the blank 7 2020 $ fill in the blank 8 For each method, what is the book value of the machine at the end of 2019? At the end of 2020? (Round your answers to the nearest dollar.)
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