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

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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I already got part A Part B i believe its 11000 but im not positive Part C is confusing..
Your answer is partially correct.
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
$
11000
Double-diminishing-balance method
$
eTextbook and Media
Transcribed Image Text:Your answer is partially correct. 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 $ 11000 Double-diminishing-balance method $ eTextbook and Media
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