Double-Declining-Balance Depreciation A small delivery truck was purchased on January 1 at a cost of $5,000. It has an estimated useful life of four years and an estimated salvage value of $1,000. Prepare a depreciation schedule showing the depreciation expense, accumulated depreciation, and book value for each year under the double-declining-balance method.

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Double-Declining-Balance Depreciation

A small delivery truck was purchased on January 1 at a cost of $5,000. It has an estimated useful life of four years and an estimated salvage value of $1,000.

Prepare a depreciation schedule showing the depreciation expense, accumulated depreciation, and book value for each year under the double-declining-balance method.

Small Delivery Truck
Depreciation Schedule
On January 1
Book Value
Accumulated
Beginning
Depreciation Book Value
Year
of Year
x Rate (%) = Depreciation Expense
End of Year
End of Year
1
2$
$4
2
3
4
Transcribed Image Text:Small Delivery Truck Depreciation Schedule On January 1 Book Value Accumulated Beginning Depreciation Book Value Year of Year x Rate (%) = Depreciation Expense End of Year End of Year 1 2$ $4 2 3 4
Expert Solution
Information given

Purchase cost of truck= $5,000

Estimated useful life= 4 Years

Estimated salvage value= $1,000

 

Depreciation expense refers to the reduction in the value of the fixed assets due to the use of that asset or with the passage of time.

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