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Please help with red check marked answers. Depreciation for Partial Periods Malone Delivery Company purchased a new delivery truck for $39,000 on April 1, 2019.
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Depreciation for Partial Periods
Malone Delivery Company purchased a new delivery truck for $39,000 on April 1, 2019. The truck is expected to have a service life of 5 years or 150,000 miles and a residual value of $3,000. The truck was driven 8,000 miles in 2019 and 16,000 miles in 2020. Malone computes depreciation expense to the nearest whole month.
Required: 1. Compute depreciation expense for 2019 and 2020 using the following methods: (Round your answers to the nearest dollar.) a. Straight-line method 2. For each method, what is the book value of the machine at the end of 2019 ? At the end of 2020 ? (Round your answers to the nearest dollar.)
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