Using the information given in Exercise 5Apx-1A, prepare a depreciation schedule showing the depreciation expense, accumulated depreciation,

Question:

Using the information given in Exercise 5Apx-1A, prepare a depreciation schedule showing the depreciation expense, accumulated depreciation, and book value for each year under the sum-of-the-years’- digits method.

Exercise 5Apx-1A

A small delivery truck was purchased on January 1 at a cost of $25,000. It has an estimated useful life of four years and an estimated salvage value of $5,000. Prepare a depreciation schedule showing the depreciation expense, accumulated depreciation, and book value for each year under the straightline method.

Salvage Value
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important...