Question
On January 1, 2020, a truck was purchased for the cost of $89,670. The following information is being used to calculate depreciation: - These trucks
On January 1, 2020, a truck was purchased for the cost of $89,670. The following information is being used to calculate depreciation:
- These trucks can usually drive an average of 345,000 KMs in their life-time.
- The truck is estimated to have a 5 year useful life and a residual value of $6,540
- The truck was driven for 29,568 KM in 2020 and 38,192 KM in 2021.
The companys fiscal year end is November 30. The units-of-production method is used to depreciate the asset. Round the kilometer rate to three decimal places (e.g. $1.035/km).
1. Depreciation expense for fiscal year 2020 is: (nearest dollar without comma, e.g. 15000): Answer
2. Depreciation expense for fiscal year 2021 is: (nearest dollar without comma, e.g. 15000): Answer
3. The truck's carrying amount, November 30, 2021: (nearest dollar without comma, e.g. 15000):
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