Depreciation for Partial Periods

Storm Delivery Company purchased a new delivery truck for $54,000 on April 1, 2019. The truck is expected to have a service life of 10 years or 170,000 miles and a residual value of $3,000. The truck was driven 8,000 miles in 2019 and 18,000 miles in 2020. Storm computes depreciation expense to the nearest whole month.

This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the question below.

Open spreadsheet

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	$ fill in the blank 2
      2020	$ fill in the blank 3

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

      2019	$ fill in the blank 4
      2020	$ fill in the blank 5

   3. Double-declining-balance method

      2019	$ fill in the blank 6
      2020	$ fill in the blank 7

   4. Activity method

      2019	$ fill in the blank 8
      2020	$ fill in the blank 9

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	$ fill in the blank 10
      2020	$ fill in the blank 11

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

      2019	$ fill in the blank 12
      2020	$ fill in the blank 13

   3. Double-declining-balance method

      2019	$ fill in the blank 14
      2020	$ fill in the blank 15

   4. Activity method

      2019	$ fill in the blank 16
      2020	$ fill in the blank 17