Depreciation for Partial Periods

Lightning Delivery Company purchased a new delivery truck for $$45,000$ on April $1,2019.$ The truck is expected to have a service life of $10$ years or $120,000$ miles and a residual value of $$3,000.$ The truck was driven $10,000$ miles in $2019$ and $13,000$ miles in $2020.$ Lightning 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 $1$

$2020$ $ fill in the blank $2$

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.$)$

Straight$-$line method

$2019$ $ fill in the blank $9$

$2020$ $ fill in the blank $10$

Sum$-$of$-$the$-$years'$-$digits method

$2019$ $ fill in the blank $11$

$2020$ $ fill in the blank $12$

Double$-$declining$-$balance method

$2019$ $ fill in the blank $13$

$2020$ $ fill in the blank $14$

Activity method

$2019$ $ fill in the blank $15$

$2020$ $ fill in the blank $16$

Next Level The book value of the asset in the early years of the asset's service will be

under an accelerated method as compared to the straight$-$line method. The

method is appropriate when the service life of the asset is affected primarily by the amount the asset is used.

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