QUESTION 3 (13 Marks)

Kavanaugh Limited purchased a delivery truck on January 2, 2017 for a total cost of $33,600. The delivery truck was expected to have a useful life of five years at which time it will have a residual value of $1,600. Kavanaugh estimated that the truck would be driven a total of 200,000 kilometers over the five years. Actual usage was as follows: 2017, 38,000kms; 2018, 41,000kms; 2019, 44,000kms; 2020, 42,000kms and 2021, 37,000kms.

Required:

Calculate depreciation expense for each year using the following methods:

1. Straight line
2. Units of output
3. Double diminishing balance

Year	Straight Line	Units of Output	Double Diminishing Balance
2017
2018
2019
2020
2021
Total