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On July 1, 2020, Molly's Greenhouse purchased a new delivery truck for $149,000. She paid a $20.000 cash and signed a promissory note for the
On July 1, 2020, Molly's Greenhouse purchased a new delivery truck for $149,000. She paid a $20.000 cash and signed a promissory note for the remainder. Molly estimates that the delivery truck will have a five-year useful life, or 350,000 kilometres and a residual value of $9,000. Molly's Greenhouse has a December 31 year end. Molly drove the truck 20,000 km in 2020:57,000 km in 2021; 58,000 in 2022;55,000 in 2023, and 161,000 in 2024 (a) Prepare depreciation schedules for the life of the asset under the following depreciation methods 1. 2. straight-line method double-diminishing-balance, and units-of-production method 3. (Round depreciable amount per unit to 2 decimal places, e.g. 5.27 and the final answers to O decimal places, e.g. 5,276.) 1. STRAIGHT-LINE METHOD Year Depreciable Amount Depreciation Rate Fraction * of a Year Depreciation Expense Truck 2020 $ %6 6/12 $ 2021 2022 % (Round depreciable amount per unit to 2 decimal places, e.g. 5.27 and the final answers to 0 decimal places, e.g. 5,276.) 1. STRAIGHT-LINE METHOD Year Depreciable Amount Depreciation Rate Fraction * of a Year Depreciation Expense Truck 2020 $ % 6/12 $ 2021 % 2022 % 2023 % % 2024 % 2025 % 6/12 2. DOUBLE-DIMINISHING-BALANCE METHOD Depreciable Amount Year Depreciation Rate Fraction of a Year Depreciation Expense Vehicles 2020 $ % 6/12 $ 2021 % 2022 % % 2023 % % 2024 % 2025 % se 6/12 3. UNITS-OF-PRODUCTION METHOD Year No. of Units Depreciation Amt/Unit Depreciation Expense Accumul Deprecia Vehicles 2020 $ $ $ 2021 2022 2023 2024
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