Use the following to answer questions 5 15 (Straight Line, 190% declining balance and Activity Based) The company purchased a new semi-trailer truck for an acquisition cost of $250,000. The company estimates the truck will have a residual value of $65,000 when they are done using it at the end of 5 years or about 500,000 miles.

Answer 5 8 based on Straight line depreciation 5. $__________ Year 2 depreciation expense 6. $___________ Book value at the end of year 2 7. $____________ Accumulated depreciation for year 3 8. $____________Book value at the end of year 3

Answer 9 13 based on 190% Declining Balance 9. $__________ Year 2 depreciation expense 10. $____________ Accumulated depreciation for year 2 11. $____________Book value at the end of year 2 12. $__________ Year 3 depreciation expense 13. $__________ Year 4 depreciation expense

Answer 14 and 15 based on Activity based The company used the truck as follows:

Year Activity (miles) 1 98,000 2 104,000 3 95,000 4 102,000 5. 101,000

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? $______________________