Depreciation Methods

On January 1, 20X4, XYZ Company purchased a truck for $120,000.The truck is expected to have an estimated useful life of 5 years or 125,000 miles, and the company estimates that it will be able to dispose of the truck at the end of its useful life for $20,000.

Complete the tables below using the specified depreciation method.

a) Straight-line

Year Computation Depreciation Expense Accumulated Depreciation Book Value After Year's Depreciation

20X4

20X5

20X6

20X7

20X8

b) Double-declining

Year Computation Depreciation Expense Accumulated Depreciation Book Value After Year's Depreciation

20X4

20X5

20X6

20X7

20X8

c) Units-of-activity (Assume the truck was driven 10,000 miles, 50,000 miles, 20,000 miles, 20,000 miles, and 30,000 miles in 20X4-20X8, respectively.)

Year Computation Depreciation Expense Accumulated Depreciation Book Value After Year's Depreciation

20X4

20X5

20X6

20X7

20X8