A light truck is purchased on January 1 at a cost of $14,000. It is expected to serve for eight years and have a salvage value of $6,000. Calculate the depreciation expense for the first and third years of the truck's life using the following methods. Round your answers to the nearest cent. Depreciation Expense 1. Straight-line 2. Double-declining-balance 3. Sum-of-the-years-digits $ Year 1 1,000✔ Year 3

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Chapter1: Financial Statements And Business Decisions
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Straight-Line, Declining-Balance, and Sum-of-the-Years'-Digits Methods
A light truck is purchased on January 1 at a cost of $14,000. It is expected to serve for eight years and have a salvage value of $6,000. Calculate the depreciation expense for the
first and third years of the truck's life using the following methods. Round your answers to the nearest cent.
1. Straight-line
2. Double-declining-balance
3. Sum-of-the-years'-digits
Depreciation Expense
Year 1
1,000
Year 3
E
Transcribed Image Text:Straight-Line, Declining-Balance, and Sum-of-the-Years'-Digits Methods A light truck is purchased on January 1 at a cost of $14,000. It is expected to serve for eight years and have a salvage value of $6,000. Calculate the depreciation expense for the first and third years of the truck's life using the following methods. Round your answers to the nearest cent. 1. Straight-line 2. Double-declining-balance 3. Sum-of-the-years'-digits Depreciation Expense Year 1 1,000 Year 3 E
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