Depreciation for Partial Periods

Malone Delivery Company purchased a new delivery truck for $43,800 on April 1, 2016. The truck is expected to have a service life of 10 years or 159,600 miles and a residual value of $5,760. The truck was driven 9,200 miles in 2016 and 12,000 miles in 2017. Malone computes depreciation to the nearest whole month.

Required:

Compute depreciation expense for 2016 and 2017 using the

For interim computations, carry amounts out to two decimal places. Round your final answers to the nearest dollar.

Straight-line method

2016 $ 2,853

2017 $ 3,804

Sum-of-the-years'-digits method

2016 ?????

2017 $ 6,398

Double-declining-balance method

2016 $ 6,570

2017 $ 7,446

Activity method

2016 $ 2,208

2017 $ 2,880

For each method, what is the book value of the machine at the end of 2016? At the end of 2017?

(Round your answers to the nearest dollar.)

Straight-line method

2016 $ 40,947

2017 $ 37,143

Sum-of-the-years'-digits method

2016 ??????

2017 ??????

Double-declining-balance method

2016 $ 37,230

2017 $ 29,784

Activity method

2016 $41,592

2017 $ 38,712

The book value of the asset in the early years of the asset's service will be lower under an accelerated method as compared to the straight-line method. The activity method is appropriate when the service life of the asset is affected primarily by the amount the asset is used.