Question $2$

Miya Co$.$ purchased a truck to use for deliveries and is attempting to determine how much depreciation

expense would be recognized under three different methods. The truck cost $$55,000,$ and is expected

to have a value of $$5,000$ at the end of its $4-$year life. The truck is expected to be used at the rate of

$25,000$ kilometers in the first year, $30,000$ kilometers in the second and third years, and $15,000$

kilometers in the fourth year.

Required:

a$.$ A full year's depreciation will be recognized in the first year the truck is used. Prepare a complete

depreciation schedule with:

Straight line

Double $(200\%)$ declining balance

$150\%$ declining balance

Units of output $($based on miles$)$

b$.$ The machinery is sold for $$25,000$ at the end of the $2^{nd}$ year. Make the necessary journal entries

under each depreciation method.