Problem 1 The Brace Trucking Company purchased a new truck for $50,000 on January 1, 2023. The equipment was expected to remain in service for six years and run for 200,000 miles. At the end of its useful life, Brace estimates that the residual value will be $5,000. The truck was operated for 20,000 miles the first year, 45,000 miles the second year, 30,000 miles the third year, 40,000 miles the fourth year, 35,000 miles the fifth year and 30,000 miles the sixth year. Requirement 1. Calculate the depreciation expense for the equipment under the three depreciation methods (Straight-line, Units of production and Double-declining-Balance) for each of the first two years. Straight Line Depreciation Calculation

The Brace Trucking Company purchased a new truck for $50,000 on January 1, 2023. The equipment was expected to remain in service for six years and run for 200,000 miles. At the end of its useful life, Brace estimates that the residual value will be $5,000. The truck was operated for 20,000 miles the first year, 45,000 miles the second year, 30,000 miles the third year, 40,000 miles the fourth year, 35,000 miles the fifth year and 30,000 miles the sixth year. Requirement 1. Calculate the depreciation expense for the equipment under the three depreciation methods (Straight-line, Units of production and Double-declining-Balance) for each of the first two years