Question
Smith Company purchased a truck for $60,000 and paid $6,000 in freight charges to have the truck shipped to their business. They also paid $100
Smith Company purchased a truck for $60,000 and paid $6,000 in freight charges to have the truck shipped to their business. They also paid $100 in a motor vehicle license. The company expected the truck to last four years or 100,000 miles with an estimated residual value of $6,000 at the end of that time. During the second year, the truck was driven 27,000 miles.
Compute the depreciation for just the second year under each of the methods and place your answers in the blanks provided. Type your answers on the lines below and show your work for full credit.
Straight-Line $ _________________
Units-of-activity $ _________________
Double-declining-balance $ _________________
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