A fleet of refrigerated delivery trucks is acquired on January 5, 2017, at a cos

Question

A fleet of refrigerated delivery trucks is acquired on January 5, 2017, at a cost of $930,000 with an estimated useful life of 8 years and an estimated salvage value of $83,700. 00 IE Compute the depreciation expense for the first three years using the double-declining-balance method. (Round your answers to the nearest dollar.) eBook End of Period Print Depreciation for the Period Beginning of Depreciation Period Book Depreciation Value Rate (%) Expense Annual Period Accumulated Depreciation Book Value First Year Second Year Third Year

Explanation / Answer

Depreciation rate = 1/ Useful life * 200% = 1/8 * 200% = 25%

DEPRECIATION FOR THE PERIOD END OF PERIOD Annual period Beginning of period book value Depreciation rate (%) Depreciation expense Accumulated Depreciation Book Value First year 930,000 25% 232,500 232,500 697,500 Second year 697,500 25% 174,375 406,875 523,125 Third year 523,125 25% 130,781.25 537,656.25 392,343.75

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