Some trucks purchased by a U-Haul franchise should last 7 years. The purchase price was $176,000. Shipping costs were $5,000. The trade-in (salvage value) is $19,000. Prepare a depreciation schedule by using the double-declining-balance method for the trucks. (Round dollar amounts to the nearest cent.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Some trucks purchased by a U-Haul franchise should last 7 years. The purchase price was $176,000. Shipping costs were $5,000. The trade-in (salvage value) is $19,000. Prepare a depreciation schedule by using the double-declining-balance method for the trucks. (Round dollar amounts to the nearest cent. Round your percentages to six decimal places.)

U-HaulDouble-Declining—Balance Depreciation ScheduleTruck Fleet

End of Year Beginning Book Value ($) Depreciation Rate (%) Depreciation for the Year ($) Accumulated Depreciation ($) Ending book value ($)
  $181,000 (new)
1  %
2  %
3  %
4  %
5  %
6  %
7  %
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Some trucks purchased by a U-Haul franchise should last 7 years. The purchase price was $172,000. Shipping costs were $5,000. The trade-in (salvage value) is $19,000. Prepare a depreciation schedule by using the double-declining-balance method for the trucks. (Round dollar amounts to the nearest cent. Round your percentages to six decimal places.)

U-HaulDouble-Declining—Balance Depreciation ScheduleTruck Fleet

End of Year Beginning Book Value ($) Depreciation Rate (%) Depreciation for the Year ($) Accumulated Depreciation ($) Ending book value ($)
  $177,000 (new)
1
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