Depreciation for Partial Periods

Storm Delivery Company purchased a new delivery truck for $69,000 on April 1, 2019. The truck is expected to have a service life of 5 years or 180,000 miles and a residual value of $3,000. The truck was driven 10,000 miles in 2019 and 20,000 miles in 2020. Storm 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	$ 9900
      2020	$ 13200

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

      2019	$ 16500
      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	$ 59100
      2020	$ 45900

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

      2019	$ 52500
      2020	$

   3. Double-declining-balance method

      2019	$ 48300
      2020	$

   4. Activity method

      2019	$
      2020	$

3. Next Level 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.