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On January 1, 2018, Speedway Delivery Service purchased a truck at a cost of $90,000. Before placing the truck in service, Speedway spent $3,000 painting
On January 1, 2018, Speedway Delivery Service purchased a truck at a cost of $90,000. Before placing the truck in service, Speedway spent $3,000 painting it, $1,200 replacing tires, and $4,800 overhauling the engine. The truck should remain in service for five years and have a residual value of $9,000. The truck's annual mileage is expected to be 21,000 miles in each of the first four years and 16,000 miles in the fifth year-100,000 miles in total. In deciding which depreciation method to use, Harold Parker, the general manager, requests a depreciation schedule for each of the depreciation methods (straight-line, units-of-production, and double-declining-balance). Read the requirements. Begin by preparing a depreciation schedule using the straight-line method. Straight-Line Depreciation Schedule Depreciation for the Year Date Asset Cost Depreciable Cost Useful Life: Depreciation Expense Depreciation Accumulated Book Value 1-1-2018 102000 12-31-2018 = 12-31-2019 12-31-2020 12-31-2021 12-31-2022
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