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Linton Company purchased a delivery truck for $33, 000 on January 1, 2017. The truck has an expected salvage value of $1, 300, and is
Linton Company purchased a delivery truck for $33, 000 on January 1, 2017. The truck has an expected salvage value of $1, 300, and is expected to be driven 109, 000 miles over its estimated useful life of 9 years. Actual miles driven were 15, 400 in 2017 and 12, 500 in 2018. Calculate depreciation expense per mile under units-of-activity method. 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. Assume that Linton uses the straight-line method. Prepare the journal entry to record 2017 depreciation. Assume that Linton uses the straight-line method. Show how the truck would be reported in the December 31, 2017, balance sheet
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