Exercise 9-7 (Part Level Submission)

Linton Company purchased a delivery truck for $27,000 on January 1, 2017. The truck has an expected salvage value of $2,400, and is expected to be driven 110,000 miles over its estimated useful life of 5 years. Actual miles driven were 15,500 in 2017 and 13,800 in 2018

Calculate depreciation expense per mile under units-of-activity method

Depreciation expense:2.2 per a mile.

b) Compute depreciation expense for 2017 and 2018 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 0 decimal places, e.g. 15%. Round final answers to 0 decimal places, e.g. 2,125.)

depreciation expense

2017 2018

1)Straight-line method $ $

2)units-of-activity method $ $

3) double-declining-balance method $ $