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.

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Part 1

	Double-declining-balance method
Year	Annual Depreciation Expense	Accumulated Depreciation	Book Value
Start			29000
2020
2021
2022
2023

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Requirements

Using the double-declining-balance 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