This will be copy and paste. ABC Inc purchased a delivery truck for $ 32,000 on
ID: 2372397 • Letter: T
Question
This will be copy and paste.
ABC Inc purchased a delivery truck for $ 32,000 on January 1, 2006. If the useful life of the truck is four years and the residual value is $ 2,000, determine the yearly depreciation, accumulated depreciation and book value each year for both straight line and double declining depreciation. The format is provided below to assist you.
Straight Line
Year
Purchase Price
Depreciation
Accumulated
Book Value
Depreciation
1
2
3
4
Double Declining
Year
Purchase Price
Depreciation
Accumulated
Book Value
Depreciation
1
2
3
4
Straight Line
Year
Purchase Price
Depreciation
Accumulated
Book Value
Depreciation
1
2
3
4
Double Declining
Year
Purchase Price
Depreciation
Accumulated
Book Value
Depreciation
1
2
3
4
Explanation / Answer
Straight Line
Year
Purchase Price
Depreciation
Accumulated
Book Value
Depreciation
1
32000
7500
7500
24500
2
-
7500
15000
17000
3
-
7500
22500
9500
4
-
7500
30000
2000
Double Declining
Year
Purchase Price
Depreciation
Accumulated
Book Value
Depreciation
1
32000
2000
2000
30000
2
-
4000
6000
26000
3
-
8000
14000
18000
4
-
16000
30000
2000
Straight Line
Year
Purchase Price
Depreciation
Accumulated
Book Value
Depreciation
1
32000
7500
7500
24500
2
-
7500
15000
17000
3
-
7500
22500
9500
4
-
7500
30000
2000
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