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On July 1, 2020, Molly's Greenhouse purchased a new delivery truck for $96,000. 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 $96,000. 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 225,000 kilometres and a residual value of $6,000. Molly's Greenhouse has a December 31 year end. Molly drove the truck 16,000km in 2020;45,000km in 2021; 47,000 in 2022; 44,000 in 2023 , and 74,000 in 2024. (a) Your answer is partially correct. Prepare depreciation schedules for the life of the asset under the following depreciation methods: 1. straight-line method 2. double-diminishing-balance, and 3. units-of-production method
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