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Storm Delivery Company purchased a new delivery truck for $53,400 on April 1, 2016. The truck is expected to have a service life of 5
Storm Delivery Company purchased a new delivery truck for $53,400 on April 1, 2016. The truck is expected to have a service life of 5 years or 150,000 miles and a residual value of $4,320. The truck was driven 8,200 miles in 2016 and 11,800 miles in 2017. Storm computes depreciation to the nearest whole month.
Required:
- Compute depreciation expense for 2016 and 2017 using the For interim computations, carry amounts out to two decimal places. Round your final answers to the nearest dollar
- Sum-of-the-years'-digits method
2016 $ 2017 $ - Activity method
2016 $ 2017 $
- Sum-of-the-years'-digits method
- For each method, what is the book value of the machine at the end of 2016? At the end of 2017? (Round your answers to the nearest dollar.)
- Sum-of-the-years'-digits method
2016 $ 2017 $ - Activity method
2016 $ 2017 $
- Sum-of-the-years'-digits method
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