A truck was purchased on January 2 at a cost of $60,000. It is expected to be used for 5 years and to have a salvage value of $5,000 after 120,000 miles of service. The truck was driven 23,000 miles the first year and 25,000 miles the second year. Calculate the depreciation expense for the 1st and 2nd years. Round your answers to two decimal places. Year 1 Year 2 Straight-line $ $ Declining-balance (double) $ $ Sum-of-the-years-digits' $ $ Units-of-production $ $
A truck was purchased on January 2 at a cost of $60,000. It is expected to be used for 5 years and to have a salvage value of $5,000 after 120,000 miles of service. The truck was driven 23,000 miles the first year and 25,000 miles the second year. Calculate the depreciation expense for the 1st and 2nd years. Round your answers to two decimal places. Year 1 Year 2 Straight-line $ $ Declining-balance (double) $ $ Sum-of-the-years-digits' $ $ Units-of-production $ $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A truck was purchased on January 2 at a cost of $60,000. It is expected to be used for 5 years and to have a salvage value of $5,000 after 120,000 miles of service. The truck was driven 23,000 miles the first year and 25,000 miles the second year. Calculate the
| Year 1 | Year 2 | |
| Straight-line | $ | $ |
| Declining-balance (double) | $ | $ |
| Sum-of-the-years-digits' | $ | $ |
| Units-of-production | $ | $ |
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