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Please show all work, so I know how to get the answers as well. Bar Delivery Company purchased a new delivery truck for $39,000 on
Please show all work, so I know how to get the answers as well.
Bar Delivery Company purchased a new delivery truck for $39,000 on April 1, 2019. The truck is expected to have a service life of 10 years or 90,000 miles and a residual value of $3,000. The truck was driven 10,000 miles in 2019 and 14,000 miles in 2020 . Bar 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 20192020$$XX b. Sum-of-the-years'-digits method 20192020$$XX c. Double-declining-balance method 20192020$$XX d. Activity method 20192020$$XX 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.) a. Straight-line method 20192020$$XX b. Sum-of-the-years'-digits method 20192020$$XX c. Double-declining-balance method 20192020$$XX d. Activity method 20192020$$Step by Step Solution
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