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On January 2, 2014, Benson Inc. bought a truck for $31.000. The truck's useful life was estimated at 70,000 kilometres with a $10,000 trade-in value.
On January 2, 2014, Benson Inc. bought a truck for $31.000. The truck's useful life was estimated at 70,000 kilometres with a $10,000 trade-in value. Calculate annual depreciation under the units-of-production method and complete the following schedule, assuming that the actual kilometres driven in each year were as shown in the schedule. Round all final amounts to the nearest dollar. For simplicity, assume the truck is depreciated as an individual item and will not be broken down into its parts and depreciated. Actual Dep. Accum. Book Value Year Kilometres Expense Dep. Dec. 31 2014 24.000 2015 15,000 2016 16,000 2017 23,000
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