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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 $2,200 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 $2,200 painting it, $1,700 replacing tires, and $10,100 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, Harvey Warner, 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. 12-31-2022 99,000 + 5 years = 19,800 99,000 10,000 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.) Useful life in units Cost 109,000 Residual value 10,000 ) + |) = Depreciation per unit $ 0.80 ( 123,750 Prepare a depreciation schedule using the units-of-production method. (Enter the depreciation per unit to two decimal places, $X.XX.) Units-of-Production Depreciation Schedule Depreciation for the Year Asset Depreciation Book Number of Units Depreciation Accumulated Expense Depreciation Date Cost Per Unit Value 1-2-2018 109000 12-31-2018 1090000000 12-31-2019 1090000000 12-31-2020 1090000000 12-31-2021 1090000000 12-31-2022 109000 x 109000 x 109000 x 109000 x 109000 x 10000 = 10000 = 10000 = 10000 = 10000 =
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