Question
Required information Brief Exercise 9.10 Alternative Depreciation Methods (LO9-4) [The following information applies to the questions displayed below.] M. C. Jones purchased a truck for
Required information
Brief Exercise 9.10 Alternative Depreciation Methods (LO9-4)
[The following information applies to the questions displayed below.]
M. C. Jones purchased a truck for $30,500 to be used in his business. He is considering depreciating the truck by two methods: units-of-output (assuming total miles driven of 80,000) and double-declining-balance (assuming a 5-year useful life). The truck is expected to be sold for approximately $6,500 at the end of its useful life.
Brief Exercise 9.10 Part a
Prepare a comparison of the first years depreciation expense that would be recognized by Jones under these methods, assuming the truck was actually driven 10,000 miles in the first year.
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