On 8-1-X1 we bought a truck for company use. The truck cost $195,000. We estimat

Question

On 8-1-X1 we bought a truck for company use. The truck cost $195,000. We estimated that the truck would have a 5 year life, last 190,000 miles and have a $15,000 trade in value at the end of its service life.

Required: Fill in the charts below
Straight-line Depreciation
Year Annual Depreciation Expense Accumulated Depreciation
X1
X2
X3
X4
X5
X6




Double Declining Depreciation
Year Annual Depreciation Expense Accumulated Depreciation
X1
X2
X3
X4
X5
X6

Units of Production Depreciation
Year Actual miles Annual Depreciation Expense Accumulated Depreciation
X1 45,000
X2 75,000
X3 62,000
X4 70,000
X5 60,000
X6 65,000

Explanation / Answer

St line (195,000-15,000)/5= 36,000 X1 36,000 36,000 X2 36,000 72,000 X3 36,000 108,000 X4 36,000 144,000 X5 36,000 180,000 X6 180,000 DDB 195,000*2/5= 78,000 X1 78,000 78,000 X2 46,800 124,800 (195,000-78,000)*2/5 X3 28,080 152,880 X4 16,848 169,728 X5 10,272 180,000 (depreciate down to salvage value) X6 180,000 Units of production (195,000-15,000)/190,000= 0.9474/mile X1 42,633 42,633 (45,000*0.9474) X2 71,055 113,698 X3 58,739 172,437 X4 7,563 180,000 (depreciate down to salvage value) X5 180,000 X6 180,000

Related Questions

Navigate

• Browse (All)
• Browse O
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.