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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 remainder.
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 bfe, 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 13,000km in 2023;36,000km in 2024;37,000in2025;35,000in2026, and 40,000 in 2027 . (a) Prepare a depreciation schedule for the life of the asset under each of the following me thods: 1. straight-fine method 2. double diminishing-balance, and 3. units-of production method (Round depreciable amount per unit to 2 decimal ploces, es. 5.27 and the final answess to 0 decimal places, eg. 5.276. The depreciation rate in the table below is the rate prior to any required pro-ration)
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