Depreciation for Partial Periods

Malone Delivery Company purchased a new delivery truck for $57,000 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 16,000 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.)
   1. Straight-line method

      2019	$ ____________
      2020	$ ____________

   2. Sum-of-the-years'-digits method

      2019	$ __________
      2020	$ __________

   3. Double-declining-balance method

      2019	$ ___________
      2020	$ ___________

   4. Activity method

      2019	$ __________
      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.)
   1. Straight-line method

      2019	$ ___________
      2020	$ ___________

   2. Sum-of-the-years'-digits method

      2019	$ ____________
      2020	$ ____________

      1. Double-declining-balance method

         2019	$ __________
         2020	$ __________

   3. Activity method

      2019	$ ____________
      2020	$ ____________

3. 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.