Question No-2:

KIM Traders purchased a delivery truck for $13,000 on January 1, 2017. The truck has an expected salvage value of $1,000 and is expected to be driven 100,000 miles over its estimated life of 5 years.

Actual miles driven were:

Year	Miles Driven	Year	Miles Driven
2017	15,000	2020	25,000
2018	30,000	2021	10,000
2019	20,000

Requirements: (Marks 7+1+2=10)

1. Compute depreciation schedules for 2017, 2018, 2019, 2020 and 2021 using straight line method, and units of activity method.
2. Assuming KIM Traders use double declining balance method, give the journal entry for depreciation expense in December 31, 2017.
3. How the delivery truck is presented in the balance sheet on December 31, 2017 under double declining balance method?