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Delivery Service Express (DSE) has a fleet of trucks and specializes in the delivery of refrigerated foods. The warehouse manager purchased a delivery truck for

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Delivery Service Express (DSE) has a fleet of trucks and specializes in the delivery of refrigerated foods. The warehouse manager purchased a delivery truck for $240,000. Part of the job of the Chief Financial Officer (CFO) is to depreciate the delivery truck over its estimated useful life. The CFO is considering three depreciation methods activity based, straight line, and double declining balance The CFO has plotted depreciation each year left graph) using an estimated five year useful life. The right graph shows the accumulation of depreciation each year for each method Depreciation Each Year by Method Accumulated Depreciation Each Year by Metha $120,000 $250,000 $100.000 $200,000 $200,000 $80,000 $150,000 $60,000 $100,000 S40.000 $20,000 -Method Method 2 Methods $50.000 Click here to open the graphs in a new tab. WARS RESUR UNE TE S TIR WOORDE HOE For $240,000. Part of the job of the Chief Financial Officer (CFO) is to depreciate the delivery truck over its FO is considering three depreciation methods activity based straight line, and double declining balance. Clation each year (left graph) using an estimated five year useful life. The right graph shows the on each year for each method. reciation Each Year by Method Accumulated Depreciation Each Year by Method $250,000 $200,000 $200,000 $150,000 Method 1 Method 2 $100,000 Method 3 Method 1 Method 2 Method $50,000 Method 3 Year 1 Click here to open the graph(s) in a new tab. Required: Complete this question by entering your answers in the tabs below. Req1 Req 2A Req 28 Req3 Reg 4 Req 5A Req 5B What is the truck's estimated residual value (Hint: Recall the purchase cost of the truck is $240,000) Estimated Residual Value Method 3 Year 1 Year1 2 Click here to open the graph(s) in a new tab. Required: Complete this question by entering your answers in the tabs below. Reg 1 Reg 2A Req 2B Reg 3 Req5A Reg 5B By the end of Year 2, Accumulated Depreciation under Method 1 is $80,000. What would be the reported book value of the truck at that time? Book value Method 3 Year 1 Click here to open the graph(s) in a new tab. Required: Complete this question by entering your answers in the tabs below. Req 1 Req ZA Reg 28 Req3 Reg 4 Req 5A Req 5B If the CFO instead uses Method 3, Accumulated Depreciation by the end of Year 2 would be $153,600. What would be the reported book value of the truck at the end of Year 2 using Method 3? Book Value

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