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On July 1, 2023, Pearl's Greenhouse purchased a new delivery truck for $88,000. She paid $20,000 cash and signed a promissory note for the
On July 1, 2023, Pearl's Greenhouse purchased a new delivery truck for $88,000. She paid $20,000 cash and signed a promissory note for the remainder. Pearl estimates that the delivery truck will have a five-year useful life, or 200,000 kilometres and a residual value of $8,000. Pearl's Greenhouse has a December 31 year end. Pearl drove the truck 16,000 km in 2023; 45,000 km in 2024; 47,000 in 2025; 44,000 in 2026, and 49,000 in 2027. (a) Your answer is partially correct. Prepare a depreciation schedule for the life of the asset under each of the following methods: 1. straight-line method 2. double diminishing-balance, and 3. units-of-production method
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