Exercise 10-07 a1-b2 Pina Colada Company purchased a delivery truck for $35,000 on January 1, 2020. The truck has an expected salvage value of $2,140, and is expected to be driven 106,000 miles over its estimated useful life of 10 years. Actual miles driven were 12,400 in 2020 and 14,900 in 2021. Your answer is correct. Calculate depreciation expense per mile under units-of-activity method. (Round answer to 2 decimal places, e.g. 0.50.) Depreciation expense 0.31 per mile SHOW LIST OF ACCOUNTS SHOW SOLUTION SHOW ANSWER LINK TO TEXT Your answer is correct. Compute depreciation expense for 2020 and 2021 using (1) the straight-line method, (2) the units-of- activity method, and (3) the double-declining-balance method. (Round depreciation cost per unit to 2 decimal places, e.g. 0.50 and depreciation rate to o decimal places, e.g. 15%. Round final answers to 0 decimal places, e.g. 2,125.) Depreciation Expense Depreciation Expense 2020 2021 (1) Straight-line method 3286.00 3286.00 (2) Units-of-activity method 3844.00 4619.00 (3) Declining-balance method 7000.00 5600.00 SHOW LIST OF ACCOUNTS SHOW SOLUTION SHOW ANSWER LINK TO TEXT Your answer is partially correct. Try again. Assume that Pina Colada uses the straight-line method. Prepare the journal entry to record 2020 depreciation. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Round answers to 0 decimal places, e.g. 2,125.) Account Titles and Explanation Debit Credit Depreciation Expense ........ 4107.50 Accumulated Depreciation-Equipment 4107.50 SHOW LIST OF ACCOUNTS Your answer is partially correct. Try again. Assume that Pina Colada uses the straight-line method. Show how the truck would be reported in the December 31, 2020, balance sheet. (Round answers to o decimal places, e.g. 2,125.) PINA COLADA COMPANY Partial Balance Sheet December 31, 2020 TEquipment 35000.00 I Less 4107.50 Accumulated Depreciation-Equipment 30892.50 Click if you would like to Show Work for this question: Open Show Work SHOW LIST OF ACCOUNTS LINK TO TEXT