Sexton Company acquired a truck for use in its business for $26,500 in a cash transaction. The truck is expected to be used over a five-year period, will be driven approximately 18,000 miles per year, and is expected to have a value at the end of the five years of $4,800. a. Compute the amount of depreciation that will be taken in the first two years of the truck’s useful life if the actual miles driven are 16,000 and 18,200, respectively. b-1. What would be the accumulated depreciation at the end of the second year if the company had chosen the straight-line depreciation method? b-2. What would be the difference in accumulated depreciation between the units-of-production and straight-line methods at the end of the second year?
Sexton Company acquired a truck for use in its business for $26,500 in a cash transaction. The truck is expected to be used over a five-year period, will be driven approximately 18,000 miles per year, and is expected to have a value at the end of the five years of $4,800.
a. Compute the amount of
b-1. What would be the
b-2. What would be the difference in accumulated depreciation between the units-of-production and
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