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On January 2, 2018, Reliable Delivery Service purchased a truck at a cost of $65,000. Before placing the truck in service, Reliable spent $2,200 painting
On January 2, 2018, Reliable Delivery Service purchased a truck at a cost of $65,000. Before placing the truck in service, Reliable spent $2,200 painting it, $1,700 replacing tires, and $10,600 overhauling the engine. The truck should remain in service for five years and have a residual value of $6,000. The truck's annual mileage is expected to be 23,000 miles in each of the first four years and 13,000 miles in the fifth year105,000 miles in total. In deciding which depreciation method to use, Harold Parker, the general manager, requests a depreciation schedule for each of the depreciation methods (straight-line, units-of-production, and double-declining-balance). Read the requirements. Requirement 1. Prepare a depreciation schedule for each depreciation method, showing asset cost, depreciation expense, accumulated depreciation, and asset book value. Begin by preparing a depreciation schedule using the straight-line method. Depreciation for the Year Depreciable Useful Depreciation Asset epreciable Accumulated Depreciation Book Value Date Cost Cost Life Expense 1-2-2018 12-31-2018 12-31-2019 12-31-2020 12-31-2021 12-31-2022
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