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Use the following information to answer the questions below. De Plain International bought a delivery truck on January 2, 2020, for $15,000. The truck was
Use the following information to answer the questions below. De Plain International bought a delivery truck on January 2, 2020, for $15,000. The truck was expected to remain in service four years and to last 100,000 kilometers. At the end of its useful life, De Plain officials estimated that the truck's residual value would be $3,000. The truck traveled 34,000 kilometers the first year, 28,000 the second year, 18,000 the third year, and 20,000 the fourth year. Question 1: Prepare a schedule of depreciation expense per year for the truck under the three depreciation methods. Question 2 : 2.1 Assuming that the company decided to use Double-Decline method. After the two-year period, if the company would switch to the Straight-Line method. Show the updated depreciation schedule. 2.2 After the switching, at the end of the third year, the company decides to sell this truck for $2,000. Does the company incur gain on loss from this sale
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