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ogress On July 1, 2023, Bonita's Greenhouse purchased a new delivery truck for $120,000. She paid $20,000 cash and signed a promissory note for
ogress On July 1, 2023, Bonita's Greenhouse purchased a new delivery truck for $120,000. She paid $20,000 cash and signed a promissory note for the remainder. Bonita estimates that the delivery truck will have a five-year useful life, or 275,000 kilometres and a residual value of $10,000. Bonita's Greenhouse has a December 31 year end. Bonita drove the truck 22,000 km in 2023; 62,000 km in 2024; 64,000 in 2025; 61,000 in 2026, and 67,000 in 2027. Prepare a depreciation schedule for the life of the asset under each of the following methods: 1. straight-line method 2. double diminishing-balance, and 3. units-of-production method (Round depreciable amount per unit to 2 decimal places, e.g. 5.27 and the final answers to decimal places, e.g. 5,276. The depreciation rate in the table below is the rate prior to any required pro-ration.) 1. STRAIGHT-LINE METHOD Year Depreciable Amount Depreciation Rate Vehicles 2023 $ 2024 2025 2026 2027 2028 2. DOUBLE DIMINISHING-BALANCE METHOD % $ % % % do % do Depreciation Expense Acc Dep $ 2. DOUBLE DIMINISHING-BALANCE METHOD Year Depreciable Amount Vehicles 2023 2024 2025 2026 Depreciation Rate % % % SA % do 2028 % 2027 Depreciation Expense Acc Dep $ SA 3. UNITS-OF-PRODUCTION METHOD ar cles No. of Units 23 24 24 25 26 27 Depreciation Amt/Unit Depreciation Expense Accumulated Depreciation $
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