Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Depreciation for Partial Periods Malone Delivery Company purchased a new delivery truck for $36,000 on April 1, 2019. The truck is expected to have a
Depreciation for Partial Periods Malone Delivery Company purchased a new delivery truck for $36,000 on April 1, 2019. The truck is expected to have a service life of 5 years or 90,000 miles and a residual value of $3,000. The truck was driven 8,000 miles in 2019 and 20,000 miles in 2020. Malone computes depreciation expense to the nearest whole month. Required: 1. Compute depreciation expense for 2019 and 2020 using the following methods: (Round your answers to the nearest dollar.) a. Straight-line method 4,950 V 2019 6,600 V 2$ 2020 b. Sum-of-the-years'-digits method 8,250 V 2019 9,350 V 2020 c. Double-declining-balance method 14,400 X 2019 8,640 x 2020 d. Activity method 2,933 2019 7,334 X 2020 2. 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.) a. Straight-line method 31,050 V 2019 24,450 V $ 2020 b. Sum-of-the-years'-digits method 27,750 2019 18,400 V $ 2020 c. Double-declining-balance method 21,600 X 2019 12,960 x 2020 d. Activity method 33,607 X 2$ 2019 25,773 X 2020
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started