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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) Your answer is partially correct. Prepare depreciation schedules for the life of the asset under the following depreciation methock: 1. 1 straight-line method double-diminishing-balance, and 2. 3. units-of-production method (Round depreciable amount per unit to 2 decimal places, eg, 5.27 and the final answers to decimal places, eg 5.276.) 1. STRAIGHT-LINE METHOD End of Year Fraction * of a Year = Depreciation Expense Accumulated Depreciation Carrying Amount % 6/12 1400C % 28000 %6 2800C % 2800C % 2800C % 6/12 1400C 2. DOUBLE-DIMINISHING-BALANCE METHOD End of Year * Fraction of a Year - Depreciation Expense Accumulated Depreciation Carrying Amount % 6/12 $ 29800 % 47680 % 28808 % 17165 % 10299 % 6/12 6445 3. UNITS-OF-PRODUCTION METHOD End of Year preciation umt/Unit Depreciation Expense Accumulated Depreciation Carrying Amount 0.4 3000 0.4 22000 ANAAN ddddd 0.4 23200 0.4 22000 0.4 64000
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