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Ford Truck

Dodge Truck

Critical Thinking Assignment #$5$

Jack and Jill's Water Delivery Service is preparing adjusting entries for the month end of April $2021.$ As part of this, they need you to complete depreciation schedules for the first five years for three assets that they purchased April $1$st$,2021.$ On April $1$st$,2021$ they purchased two trucks and a forklift the following transactions show these purchases:

Paid $$20,000$ for a Ford truck retrofitted with water delivery supplies. The truck has a $15$ year useful life, a residual value of $$2,000,$ and $43,800$ hours of useful life. In each year, it is used $2,920$ hours, or eight hours a day for $365$ days a year.

Paid $$30,000$ for a Dodge truck retrofitted with water delivery supplies. The truck has a $15$ year useful life, a residual value of $$4,000,$ and the same hours of useful life as well as use per year as the Ford truck.

Paid $$15,000$ for a Forklift to load the trucks. The forklift has a nine year useful life, a $$1,000$ residual value, and $10,000$ hours of useful life. In its first year, it is used for $2,000$ hours due to training involved.

Each year after it is used for $1,000$ hours per year.

Requirements:

Complete depreciation schedules of the first five years for each asset. As part of these depreciation schedules, you must decide which type of depreciation to utilize and provide a short paragraph on why you chose that schedule.