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On January 2, 2018, Reliable Delivery Service purchased a truck at a cost of $95,000. Before placing the truck in service, Reliable spent $2,500 painting
On January 2, 2018, Reliable Delivery Service purchased a truck at a cost of $95,000. Before placing the truck in service, Reliable spent $2,500 painting it, $800 replacing tires, and $10,700 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 26,000 miles in each of the first four years and 19,750 miles in the fifth year-123,750 miles in total. In deciding which depreciation method to use. Can Thomas, the general manager, requests a depreciation schedule for each of the depreciation methods (straight-line, units-of-production, and double-declinina-balance). 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 Asset Depreciation for the Year Depreciable Useful Depreciation Cost Life Expense Accumulated | Depreciation Book Value Cost Date 1-2-2018 12-31-2018 12-31-2019 12-31-2020 12-31-2021 12-31-2022 10 000
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