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On July 1, 2023, Sweet Acacia's Greenhouse purchased a new delivery truck for $89,000. She paid $20,000 cash and signed a promissory note for the
On July 1, 2023, Sweet Acacia's Greenhouse purchased a new delivery truck for $89,000. She paid $20,000 cash and signed a promissory note for the remainder. Sweet Acacia estimates that the delivery truck will have a five-year useful life, or 160,000 kilometres and a residual value of $9,000. Sweet Acacia's Greenhouse has a December 31 year end. Sweet Acacia drove the truck 13,000 km in 2023; 36,000 km in 2024; 37,000 in 2025; 35,000 in 2026, and 40,000 in 2027. (a) 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 (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. The depreciation rate in the table below is the rate prior to any required pro-ration.) 1. STRAIGHT-LINE METHOD D
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