Question
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
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:
- Straight line
- Units of output
- Double diminishing balance
Year | Straight Line | Units of Output | Double Diminishing Balance |
2017 |
|
|
|
2018 |
|
|
|
2019 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
Total |
|
|
|
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