Homework 1

Question 1 Smart Company purchased a delivery truck for $70,000 on July 1, 2012. The truck was assigned an estimated useful life of 5 years and has a residual value of $15,000. a- Compute depreciation expense using the straight line method for the years 2012 and 2013. Year Depreciation Expense 2012 2013 b- Compute depreciation expense using the double-declining- balance method for the years 2012 and 2013. SLM Rate: ......................... Required Rate: ............................ Date Book Value Depreciation Expense Accumulated Book Value (3} Depreciation (E) c- If the truck had a useil life of 100,000 miles. And was driven 18,000 miles in 2012, and 25,000 miles in 2013, Compute depreciation expense using the units of activity method for the years 2012 and 2013. Year Depreciation Expense 2012 2013