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May i grt the correct answer please Problem 5 Nutika Company purchased a truck for $34,000. The company expects the truck to have a useful
May i grt the correct answer please
Problem 5 Nutika Company purchased a truck for $34,000. The company expects the truck to have a useful life of four years or 87.500 kilometres, with an estimated residual value of $6,000 at the end of that time. During the first and second years, the truck was driven 21,000 and 30,500 kilometres, respectively. Assume a full year of depreciation is recorded in the first year. Required: (5 marks - 10 minutes) a. Calculate depreciation expense for the first year assuming Nutika uses the straight-line method of depreciation (34,000 - $7,00 = 13.33 4 2100 6,600) x b. Calculate the carrying value at the end of year 3 assuming Nutika uses the straight-line method of depreciation. Cost - Dee Drepin 34000 6,600 ) = 0.77 34,000 (3x1000) 36000 34,000 - 21.00 = $13,000 c. Calculate depreciation expense for the second year assuming the double declining balance method is used 1/4 x2 * /4 =sof % y = 34,000 X som = 17,000 ( 24,000 - 17,000) x 5% = 8,500 Step by Step Solution
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