Grafton Company purchased a new car for use in its business on January 1, 2020.It paid $29,000 for the car.

Grafton expects the car to have a useful life of four years with an estimated residual value of zero.

Grafton expects to drive the car 40,000 miles during 2020, 75,000 miles during 2021, 90,000 miles in 2022, and 85,000 miles in 2023, for total expected miles of 290,000.

Read the requirements

Using the straight-line method of depreciation, calculate the following amounts for the car for each of the four years of its expected life:

a.	Depreciation expense
b.	Accumulated depreciation balance
c.	Book value

	Straight-line method
Year	Annual Depreciation Expense	Accumulated Depreciation	Book Value
Start
2020
2021
2022
2023