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Kenny Company purchased a new truck on January 1, 2010, at a cost of $150,000. Over its 4-year useful life, the truck is expected to be driven 100,000 miles. Salvage value is expected to be $5,000. Actual mileage was: for year 2010, 25,000 miles; for year 2011, 33,000 miles; for year 2012, 26,000 miles; and for year 2013, 16,000 miles. Required: Prepare depreciation schedules for the following methods a) Double Declining Balance Method using double the straight-line rate b) Units-Of-Activity Method

Kenny Company purchased a new truck on January 1, 2010, at a cost of $150,000. Over its 4-year useful life, the truck is expected to be driven 100,000 miles. Salvage value is expected to be $5,000. Actual mileage was: for year 2010, 25,000 miles; for year 2011, 33,000 miles; for year 2012, 26,000 miles; and for year 2013, 16,000 miles. Required: Prepare depreciation schedules for the following methods a) Double Declining Balance Method using double the straight-line rate b) Units-Of-Activity Method

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Kenny Company purchased a new truck on January 1, 2010, at a cost of $150,000. Over its 4-year useful
life, the truck is expected to be driven 100,000 miles. Salvage value is expected to be $5,000. Actual
mileage was: for year 2010, 25,000 miles; for year 2011, 33,000 miles; for year 2012, 26,000 miles; and
for year 2013, 16,000 miles.


Required:
Prepare depreciation schedules for the following methods
a) Double Declining Balance Method using double the straight-line rate
b) Units-Of-Activity Method

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Section 179 Deduction and Modified Accelerated Cost Recovery System (MACRS) Depreciation
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