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On May 1, 2019, Joe Company purchased a truck for $25,000 with a salvage value of $7,000. The company uses the units of activity methods
On May 1, 2019, Joe Company purchased a truck for $25,000 with a salvage value of $7,000. The company uses the units of activity methods of depreciation. The truck is expected to be driven 120,000 kilometers over its 4 years useful life as follows: Year 2019 25,000 Km Year 2020 40,000 Km Year 2021 30,000 Km Year 2022 25,000 Km Prepare the depreciation schedule of the truck over its useful life and specify the amounts of: Depreciable Cost per Unit: * 0 0.0375 O 0.2 0.25 O None of the above * Book Value of the year end 2019: $21,250 $22,500 $24,062.5 None of the above Depreciation Expense of the year 2020: * $1,500 $4,000 $6,000 None of the above Accumulated depreciation of the year 2021: * $3,750 $13,750 $15,000 O None of the above Depreciation Expense of the year 2022: * $750 $3,000 $4,000 None of the above Book Value at the year end 2022: * O $7,000 O $18,000 O $20,500 O None of the above * The depreciation expenses over the years are: Constant O Variable Declining
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