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Straight-Line, Declining-Balance, and Sum-of-the-Years'-Digits Methods A light truck is purchased on January 1 at a cost of $39,600. It is expected to serve for eight
Straight-Line, Declining-Balance, and Sum-of-the-Years'-Digits Methods
A light truck is purchased on January 1 at a cost of $39,600. It is expected to serve for eight years and have a salvage value of $4,240. Calculate the depreciation expense for the first and third years of the trucks life using the following methods. If required, round your answers to the nearest cent.
Depreciation Expense | ||
Year 1 | Year 3 | |
1. Straight-line | ||
2. Double-declining-balance | ||
3. Sum-of-the-years'-digits |
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