Two Brother's Moving Company purchased a group of new moving trucks for a total amount of $125,000 The vehicles are expected to last five years due to the heavy use and have a residual scrap salvage value of $10,000 at the end of that life Usage of the vehicle is tracked in miles and the vehicles in total are expected to last 2,000,000 miles During year one 750,000 miles were used, during year two 600,000 miles were used, during year three 500,000 miles were used, during year four no miles were used due to a temporary closing of the moving line of business, and during year five 150,000 miles were used Using the depreciation template provided, determine the amount of depreciation expense for the third year under each of the following assumptions The company uses the straight line method of depreciation The company uses the units of production method of depreciation The company uses the double declining balance method of depreciation Assuming straight line depreciation, prepare the journal entry for the third year Assume the company sold the vehicles at the end of the fourth year for $50,000 Prepare a journal entry for asset disposal in the fourth year Assume you are the chief accountant of this company Determine how you will choose, based on best industry practices, the depreciation method for them to use put amounts Record journal entry for depreciation expense for the third year $0 Cost Salvage value Depreciable cost Useful life Useful life in units of production Debit Credit $0 Dec 31 Depreciation Expense Accumulated Depreciation Equipment To record annual depreciation ears Record journal entry for asset disposal in the fourth year Straight line method Formula Depreciable cost Cost Salvage Value Debit Credit Dec 31 Cash Accumulated Depreciation Loss on disposal Equipment To record disposal of equipment Also, compute the straight line depreciation rate The formula is 100 divided by the useful life in years Compute the straight line depreciation rate below 0 Straight line depreciation rate Depreciable Depreciation Depreciation rate Accumulated Book Depreclation Value Annual period Cost Expense Year 1 ear 2 Year 3 ear 4 ear S Cost of machine Solvage value is not depreciated

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Two Brother's Moving Company purchased a group of new moving trucks for a total amount of $125,000. The vehicles are expected to last five years

Two Brother's Moving Company purchased a group of new moving trucks for a total amount of $125,000. The vehicles are expected to last five years due to the heavy use and have a residual/scrap/salvage value of $10,000 at the end of that life. Usage of the vehicle is tracked in miles and the vehicles in total are expected to last 2,000,000 miles. During year one 750,000 miles were used, during year two 600,000 miles were used, during year three 500,000 miles were used, during year four no miles were used due to a temporary closing of the moving line of business, and during year five 150,000 miles were used. Using the depreciation template provided, determine the amount of depreciation expense for the third year under each of the following assumptions:

The company uses the straight-line method of depreciation.
The company uses the units-of-production method of depreciation.
The company uses the double-declining-balance method of depreciation.
Assuming straight line depreciation, prepare the journal entry for the third year.
Assume the company sold the vehicles at the end of the fourth year for $50,000. Prepare a journal entry for asset disposal in the fourth year.
Assume you are the chief accountant of this company. Determine how you will choose, based on best industry practices, the depreciation method for them to use.

put amounts Record journal entry for depreciation expense for the third year $0 Cost Salvage value Depreciable cost Useful life Useful life in units of production Debit Credit $0 Dec. 31 Depreciation Expense Accumulated Depreciation -Equipment To record annual depreciation ears Record journal entry for asset disposal in the fourth year Straight line method Formula Depreciable cost Cost-Salvage Value Debit Credit Dec. 31 Cash Accumulated Depreciation Loss on disposal Equipment To record disposal of equipment Also, compute the straight line depreciation rate. The formula is 100% divided by the useful life in years Compute the straight line depreciation rate below: 0% Straight line depreciation rate Depreciable Depreciation Depreciation rate Accumulated Book Depreclation Value Annual period Cost Expense Year 1 ear 2 Year 3 ear 4 ear S Cost of machine Solvage value is not depreciated