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Hi , I need with this question. A delivery truck was acquired on January 1, 2017, at a cost of $65,000. The delivery truck was

Hi , I need with this question.

A delivery truck was acquired on January 1, 2017, at a cost of $65,000. The delivery truck was originally estimated to have a residual value of $5,000 and an estimated life of five years. The truck is expected to be driven a total of 200,000 kilometers during its life, distributed as:

Year

Number of Components 37,000

42,000

45,000

40,000

36,000

2017

2018

2019

2020

2021

Using the straight-line, units-of-production, and double-diminishing balance methods, answer the following questions.

  1. The 2017 depreciation expense using the units-of-production method is:

  1. The 2018 depreciation expense using the straight-line method is:

  1. The 2018 depreciation expense using the double-diminishing balance method is:

  1. The 2019 depreciation expense using the units-of-production method is:

  1. The book value on December 31, 2018, using the straight-line method is:

  1. The book value on December 31, 2018, using the double-diminishing balance method is:

  1. Which method results in the lowest depreciation expense in the first two years?

  1. Prepare the adjusting entry to record the 2020 depreciation expense based on the units-of- production method.

Date

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