Assume the Mariano Trucking Company purchased a truck to use in its business. The purchase date was January 1, and the price was $55,000. The estimated useful life of the truck was 5 years, and the estimated salvage value was $5,000. The truck was expected to last 100,000 miles, and was driven 12,000 miles the first year, 23,000 miles the second year, 35,000 miles the third year, 20,000 miles the fourth year, and 15,000 miles the fifth year. 1. Using the straight-line method, calculate the depreciation expense for each year. 2. Using the production method, calculate the depreciation expense for each year. 3. Using the double declining balance method, calculate the depreciation expense for each year. nformat
Assume the Mariano Trucking Company purchased a truck to use in its business. The purchase date was January 1, and the price was $55,000. The estimated useful life of the truck was 5 years, and the estimated salvage value was $5,000. The truck was expected to last 100,000 miles, and was driven 12,000 miles the first year, 23,000 miles the second year, 35,000 miles the third year, 20,000 miles the fourth year, and 15,000 miles the fifth year. 1. Using the straight-line method, calculate the depreciation expense for each year. 2. Using the production method, calculate the depreciation expense for each year. 3. Using the double declining balance method, calculate the depreciation expense for each year. nformat
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Assume the Mariano Trucking Company purchased a truck to use in its business. The
purchase date was January 1, and the price was $55,000. The estimated useful life of the
truck was 5 years, and the estimated salvage value was $5,000. The truck was expected
to last 100,000 miles, and was driven 12,000 miles the first year, 23,000 miles the second
year, 35,000 miles the third year, 20,000 miles the fourth year, and 15,000 miles the fifth
year.
1. Using the straight-line method, calculate the depreciation expense for each year.
2. Using the production method, calculate the depreciation expense for each year.
3. Using the double declining balance method, calculate the depreciation expense for
each year.
nformat
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