Norika Company purchased a truck for $44,000. The company expected the truck to have a useful life of four years or 90,000 kilometres, with an estimated residual value of $8,000 at the end of that time. During the first and second years, the truck was driven 25,000 and 27,500 kilometres, respectively. Calculate the depreciation expense for the second year under the straight-line, units-of-production, and double-diminishing-balance methods. Assume the purchase of the truck was made at the beginning of the first month of the first year. (Round depreciation per kilometre to 2 decimal places, e.g. 1.25 and final answers to 0 decimal places, e.g. 5,275.) Year 2 Depreciation Expense Straight-line mêthod 2$ 9000 Units-of-production method 2$ 11000 Double-diminishing-balance method
Norika Company purchased a truck for $44,000. The company expected the truck to have a useful life of four years or 90,000 kilometres, with an estimated residual value of $8,000 at the end of that time. During the first and second years, the truck was driven 25,000 and 27,500 kilometres, respectively. Calculate the depreciation expense for the second year under the straight-line, units-of-production, and double-diminishing-balance methods. Assume the purchase of the truck was made at the beginning of the first month of the first year. (Round depreciation per kilometre to 2 decimal places, e.g. 1.25 and final answers to 0 decimal places, e.g. 5,275.) Year 2 Depreciation Expense Straight-line mêthod 2$ 9000 Units-of-production method 2$ 11000 Double-diminishing-balance method
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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I already got part A
Part B i believe its 11000 but im not positive
Part C is confusing..
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