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Linton Company purchased a delivery truck for $31,000 on January 1, 2017. The truck has an expected salvage value of $1, 200, and is expected
Linton Company purchased a delivery truck for $31,000 on January 1, 2017. The truck has an expected salvage value of $1, 200, and is expected to be driven 101,000 miles over its estimated useful life of 10 years. Actual miles driven were 16, 300 in 2017 and 10, 700 in 2018. Calculate depreciation expense per mile under units-of-activity method. (Round answer to 2 decimal places, e.g. 0.50.) 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.) Assume that Linton uses the straight-line method. Show how the truck would be reported in the December 31, 2017, balance sheet. (Round answers to 0 decimal places, e.g. 2, 125.)
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