T Transport purchased a new semi-trailer truck for an acquisition cost of $200,000. The company estimates the truck will have a residual value of $30,000 when they are done using it at the end of 5 years or 680,000 miles.

Answer the following using the Straight-line depreciation method:

5. $___________Using Straight-line depreciation what is the book value at the end of year 3?

6. $___________ Using Straight-line depreciation what is depreciation expense for year 4?

7. $___________Using Straight-line depreciation what is accumulated depreciation at the end of year 4?

8. $___________Using Straight-line depreciation what is the book value at the end of year 4?

Using the data from the previous page

Answer the following using 190% declining balance depreciation method:

9. $___________ Using 190% declining balance depreciation what is depreciation expense for year 2?

10. $_________ Using 190% declining balance depreciation what is accumulated depreciation at the end of year 2?

11. $_________ Using 190% declining balance depreciation what is book value at the end of year 2?

12. $___________ Using 190% declining balance depreciation what is depreciation expense for year 3?

13. $___________ Using 190% declining balance depreciation what is depreciation expense for year 4?

Continue to use the data from the previous page: T Transport used the truck as follows:

Year	Activity (miles)
1	140,000
2	136,000
3	130,000
4	142,000
5	132,000
Total	680,000

14. Under activity based depreciation; what is the amount of depreciation expense they would have recorded for year 3? $___________________

15. Under activity based depreciation; what is the book value at the end of year 3? $_______________________