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Norika Company purchased a truck for $40,000. The company expected the truck to have a useful life of four years or 85,000 kilometres, with an

Norika Company purchased a truck for $40,000. The company expected the truck to have a useful life of four years or 85,000 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 23,000 and 31,500 kilometres, respectively.

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Calculate the depreciation expense for the second year under the straight-line, units-of-production, and double-diminishing-balance methods. Assume the purchase of the truck was made at the beginning of the first month of the first year. (Round depreciation per kilometre to 2 decimal places, e.g. 1.25 and final answers to decimal places, e.g. 5,275.) Year 2 Depreciation Expense Straight-line method $ Units-of-production method GA Double-diminishing-balance method $

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