On

January

1,

2018,

Brisk Delivery Service purchased a truck at a cost of $79,500.The truck is expected to remain in service for 5 years, or 105,000 miles, and the residual value at the end of its useful life is

$6,000. Compute first and second year depreciation and book value under the following depreciation methods: straight-line, units-of-production, and double-declining balance.

Straight-line depreciation:

Year 1 depreciation:

Book value at the end of year 1:

Year 2 depreciation:

Book value at the end of year 2:

Units-of-production:

Actual mileage is 23,000 miles in Year 1 and 5,000 in Year 2.

Year 1 depreciation:

Book value at the end of year 1:

Year 2 depreciation:

Book value at the end of year 2:

Double-declining-balance:

Year 1 depreciation:

Book value at the end of year 1:

Year 2 depreciation:

Book value at the end of year 2: