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Unit 6 Assignment (5%) Tucker Corporation purchased a delivery van on March 18th 2021. Assume this van was the company's only capital asset and that
Unit 6 Assignment (5%) Tucker Corporation purchased a delivery van on March 18th 2021. Assume this van was the company's only capital asset and that the company uses the half year rule in the year of acquisition and disposal for straight-line and double-declining balance depreciation methods. The following information is available. Cost $30,000 Estimated useful life 5 years or 200,000 kms Residual value $12,000 The van was driven 20,000 km in 2021. Required: 1. Calculate the depreciation for 2021 under each of the following methods: a. Usage b. Straight-line C. Double-declining balance 2. Make a table and compare the depreciation expense and carrying amount for 2021. 3. If one of management's objectives is to maximize 2021 net income, what method should be adopted
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