P 8-6

Roberto Trucks Inc. purchased a delivery van on January 1, 2018.

Here is a screenshot of the full question. Please put answers into the second screenshot of the workbook so that I understand it. Thank you!

P 8-6 Roberto Trucks Inc. purchased a delivery van on January 1, 2018. Assume this was the company's only capital asset and that the company uses the 2 year rule in the year of acquisition and disposal for straight-line and double-declining balance depreciation methods. The following information is available. Cost Estimated useful life Salvage value $11,000 4 years or 75,000 kms. The truck was driven 20,000 km in 2018. Required: $2,000 1. Calculate the depreciation for 2018 under each of the following methods: a. Usage b. Straight-line c. Double-declining balance 2. Compare the depreciation expense and carrying amount for 2018 under each of these methods. If one of management's objectives is to maximize 2018 net income, what method should be adopted? 3. P 8-6 1. a. Usage b. Straight-line c. Double-declining balance P 8-6 continued Carrying Depreciation expense 2. amount a. Usage b. Straight-line c. Double-declining balance 3