Question
Skysong, Inc. purchased a delivery truck for $32,400 on January 1, 2019. The truck has an expected salvage value of $2,400, and is expected to
Skysong, Inc. purchased a delivery truck for $32,400 on January 1, 2019. The truck has an expected salvage value of $2,400, and is expected to be driven 100,000 miles over its estimated useful life of 8 years. Actual miles driven were 15,700 in 2019 and 12,900 in 2020.
Compute depreciation expense for 2019 and 2020 using (1) the straight-line method, (2) the units-of-activity method, and (3) the double-declining-balance method. (Round depreciable cost per unit to 2 decimal places, e.g. 0.50 and depreciation rate to 0 decimal places, e.g. 15%. Round final answers to 0 decimal places, e.g. 2,125.)
Depreciation Expense | ||||||
---|---|---|---|---|---|---|
2019 | 2020 | |||||
(1) | Straight-line method | $enter a dollar amount rounded to 0 decimal places | $enter a dollar amount rounded to 0 decimal places | |||
(2) | Units-of-activity method | $enter a dollar amount rounded to 0 decimal places | $enter a dollar amount rounded to 0 decimal places | |||
(3) | Double-declining-balance method | $enter a dollar amount rounded to 0 decimal places | $enter a dollar amount rounded to 0 decimal places |
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