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On January 2, 2018, Quick Delivery Service purchased a truck at a cost of $62,000. Before placing the truck in service, Quick spent $4,000 painting
On January 2, 2018, Quick Delivery Service purchased a truck at a cost of $62,000. Before placing the truck in service, Quick spent $4,000 painting it, $2,500 replacing tires, and $1,500 overhauling the engine. The truck should remain in service for five years and have a residual value of S5,000. The truck's annual mileage is expected to be 28,000 miles in each of the first four years and 18,000 miles in the fifth year130.000 miles in total. In deciding which depreciation method to use, Steven Kittridge, the general manager, requests a depreciation schedule for each of the depreciation methods (straight-line, units-ol-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. Accumulated Depreciation Book Value Straight-Line Depreciation Schedule Depreciation for the Year Asset Depreciable Useful Depreciation Date Cost Cost Life Expense 1-2-2018 12-31-2018 12-31-2019 12-31-2020 12-31-2021 12-31-2022 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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