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Depreciation for Partial Periods Norman Delivery Company purchased a new delivery truck for $65,400 on April 1, 2019. The truck is expected to have a
Depreciation for Partial Periods Norman Delivery Company purchased a new delivery truck for $65,400 on April 1, 2019. The truck is expected to have a service life of 10 years or 136,800 miles and a residual value of $2,640. The truck was driven 11,500 miles in 2019 and 13,000 miles in 2020. Norman 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 2019 $ 2020 $ b. Sum-of-the-years-digits method 2019 2020 $ c. Double-declining-balance method 2019 2020 d. Activity method 2019 2020 o the nearest dollar.) 2. For each method, what is the book value of the machine at the end of 2019? At the end of 20207 (Round your answe a. Straight-line method 2019 2020 2019 $ 2020 $ d. 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.) a. Straight-line method 2019 2020 b. Sum-of-the-years-digits method 2019 2020 Double-declining-balance method 2019 about the same 2020 d. Activity method 2019 higher 2020 lower 3. Next Level The book value of the asset in the early years of the asset's service will be u nder 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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