"Linton company purchased a delivery truck for $34,000 on January 1,2020. The truck has an expected salvage value of $2,000 and is expected to be driven 100,000 miles over its estimated useful life of 8 years.  Actual miles driven were 15,000 in 2020 and 12,000 in 2021." Q:  "Compute depreciation for 2020 and 2021 using the double declining balance method.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
100%

Can't understand why double declining depreciation would be $8,500 for year 1 and $6,375 for year 2. I need detailed explanation, I couldn't come up with the answer and had to google it and apparently those are the correct calculations. 

 

"Linton company purchased a delivery truck for $34,000 on January 1,2020. The truck has an expected salvage value of $2,000 and is expected to be driven 100,000 miles over its estimated useful life of 8 years.  Actual miles driven were 15,000 in 2020 and 12,000 in 2021."

Q:  "Compute depreciation for 2020 and 2021 using the double declining balance method. 

Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Asset replacement decision
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education