On January 3,2018,Nimble Delivery Service purchased a truck at a cost of $70,000. The truck is expected to remain in service for 5 years, or 130,000 miles, and the residual value at the end of its useful life is $5,000. Compute first and second year depreciation and book value under the following depreciation methods: straight-line, units-of-production, and double-declining balance.

Straight-line depreciation:

Year 1 depreciation:

Book value at the end of year 1:

Year 2 depreciation:

Book value at the end of year 2:

Units-of-production:

Actual mileage is 28,000 miles in Year 1 and 5,000 in Year 2.

Year 1 depreciation:

Book value at the end of year 1:

Year 2 depreciation:

Book value at the end of year 2:

Double-declining-balance:

Year 1 depreciation:

Book value at the end of year 1:

Year 2 depreciation:

Book value at the end of year 2: