1. 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 10 years or 175,200 miles and a residual value of $3,840. The truck was driven 11,300 miles in 2019 and 13,000 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	$
         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	$

      3. Double-declining-balance method

         2019	$
         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.