Novak Corp. purchased a delivery truck for $35,600 on January 1, 2020. The truck has an expected salvage value of $1,600, and is expected to be driven 100,000 miles over its estimated useful life of 8 years. Actual miles driven were 16,100 in 2020 and 11,700 in 2021.

Calculate depreciation expense per mile under units-of-activity method

Compute depreciation expense for 2020 and 2021 using (1) the straight-line method, (2) the units-of-activity method, and (3) the double-declining-balance method.

Assume thatNovakuses the straight-line method. Prepare the journal entry to record 2020 depreciation.

Assume thatNovakuses the straight-line method. Show how the truck would be reported in the December 31, 2020, balance sheet