Woody Delivery Company purchased a new delivery truck for $69,000 on April 1, 2019. The truck is expected to have a service of 5 years or 150,000 miles and a residual value of $3,000. The truck was driven 8,000 miles in 2019 and 18,000 miles in 2020. Woody computes depreciation expense to the nearest whole month. Required: 1. Compute depreciation expense for 2019 and 2020 using the following methods: (Round your answers to the nearest doll a. Straight-line method 2019 $ 9,900✔ 13,200 ✓ b. Sum-of-the-years-digits method $ 16,500✔ 2020 2019 2020 $ 18,700 c. Double-declining-balance $ 2019 2020 $ d. Activity method 2019 $ method X 2020 2. For each method, what is the book value of the machine at the end of 2019? At the end of 2020? (Round your answers to t nearest dollar.) a. Straight-line method

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Woody Delivery Company purchased a new delivery truck for $69,000 on April 1, 2019. The truck is expected to have a service I
of 5 years or 150,000 miles and a residual value of $3,000. The truck was driven 8,000 miles in 2019 and 18,000 miles in 2020.
Woody computes depreciation expense to the nearest whole month.
Required:
1. Compute depreciation expense for 2019 and 2020 using the following methods: (Round your answers to the nearest doll-
a. Straight-line method
2019 $ 9,900✔
2020 $ 13,200✔
b. Sum-of-the-years'-digits method
2019 $ 16,500 ✓
2020
$ 18,700
c. Double-declining-balance method
$
X
2019
2020
$
d. Activity method
2019
$
2020
$
2. For each method, what is the book value of the machine at the end of 2019? At the end of 2020? (Round your answers to th
nearest dollar.)
a. Straight-line method
Transcribed Image Text:Woody Delivery Company purchased a new delivery truck for $69,000 on April 1, 2019. The truck is expected to have a service I of 5 years or 150,000 miles and a residual value of $3,000. The truck was driven 8,000 miles in 2019 and 18,000 miles in 2020. Woody computes depreciation expense to the nearest whole month. Required: 1. Compute depreciation expense for 2019 and 2020 using the following methods: (Round your answers to the nearest doll- a. Straight-line method 2019 $ 9,900✔ 2020 $ 13,200✔ b. Sum-of-the-years'-digits method 2019 $ 16,500 ✓ 2020 $ 18,700 c. Double-declining-balance method $ X 2019 2020 $ d. Activity method 2019 $ 2020 $ 2. For each method, what is the book value of the machine at the end of 2019? At the end of 2020? (Round your answers to th nearest dollar.) a. Straight-line method
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