Question
Linton Company purchased a delivery truck for $32,000on January 1, 2017. The truck has an expected salvage value of $2,500, and is expected to be
Linton Company purchased a delivery truck for $32,000on January 1, 2017. The truck has an expected salvage value of $2,500, and is expected to be driven107,000miles over its estimated useful life of5years. Actual miles driven were13,800in 2017 and11,900in 2018.
a1 Calculate depreciation expense per mile under units-of-activity method.(Round answer to 2 decimal places, e.g. 0.50.)
Depreciation expense $0.27 per mile
a2 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.)
Depreciation Expense
2017 2018
(1)Straight-line method $ $
(2)Units-of-activity method $ $
(3)Double-declining-balance method $ $
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