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On January 1, 2024, Swifty Delivery Service purchased a truck at a cost of $75,000. Before placing the truck in service, Swifty spent $4,000
On January 1, 2024, Swifty Delivery Service purchased a truck at a cost of $75,000. Before placing the truck in service, Swifty spent $4,000 painting it, $800 replacing tires, and $8,200 overhauling the engine. The truck should remain in service for five years and have a residual value of $10,000. The truck's annual mileage is expected to be 27,000 miles in each of the first four years and 12,000 miles in the fifth year-120,000 miles in total. In deciding which depreciation method to use, Alec Rivera, 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. Requirement 1. Prepare a depreciation schedule for each depreciation method, showing asset cost, depreciation expense, accumulated depreciation, and asset book value. Begin by preparing a depreciation schedule using the straight-line method. Straight-Line Depreciation Schedule Date 1-1-2024 12-31-2024 12-31-2025 Depreciation for the Year Asset Cost 75,000 Depreciable Useful Cost Life Depreciation Accumulated Expense Depreciation Book Value + + 12-31-2026 12-31-2027 12-31-2028 + + + = Before completing the units-of-production depreciation schedule, calculate the depreciation expense per unit. Select the formula, then enter the amounts and calculate the depreciation expense per unit. (Round depreciation expense per unit to two decimal places.) )+ = Depreciation per unit )+ Prepare a depreciation schedule using the units-of-production method. (Enter the depreciation per unit to two decimal places, $X.XX.)
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