Part 1:

Prepare a depreciation schedule showing depr. exp., accumulated depreciation and ending book value, year-by-year.

3 schedules for the 3 methods: straight-line, units-of-production, double declining basis. Asset is a delivery Truck.

Est. Life 4

Orig. Cost Basis 24,700.00

Est. Residual Value 1,000.00

Est. total milage 100,000

miles driven, Yr 1 22,800

miles driven, Yr 2 24,400

miles driven, Yr 3 29,400

miles driven, Yr 4 23,400

Part 2:

Assuming the truck is sold at the end of yr. 3, give the gen. journal entry to record the sale (straight-line method)

assume it was sold for:

6,800.00