Cheyenne Corp. purchased a delivery truck for $42,000 on January 1, 2022. The truck has an expected salvage value of $9,000, and is expected to be driven 100,000 miles over its estimated useful life of 8 years. Actual miles driven were 15,600 in 2022 and 10,000 in 2023. Compute depreciation expense for 2022 and 2023 using (1) the straight-line method, (2) the units-of-activity method, and (3) the double-declining-balance method.
Cheyenne Corp. purchased a delivery truck for $42,000 on January 1, 2022. The truck has an expected salvage value of $9,000, and is expected to be driven 100,000 miles over its estimated useful life of 8 years. Actual miles driven were 15,600 in 2022 and 10,000 in 2023. Compute depreciation expense for 2022 and 2023 using (1) the straight-line method, (2) the units-of-activity method, and (3) the double-declining-balance method.
Chapter11: Long-term Assets
Section: Chapter Questions
Problem 4EB: Montello Inc. purchases a delivery truck for $25,000. The truck has a salvage value of $6,000 and is...
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Cheyenne Corp. purchased a delivery truck for $42,000 on January 1, 2022. The truck has an expected salvage value of $9,000, and is expected to be driven 100,000 miles over its estimated useful life of 8 years. Actual miles driven were 15,600 in 2022 and 10,000 in 2023. Compute depreciation expense for 2022 and 2023 using (1) the straight-line method, (2) the units-of-activity method, and (3) the double-declining-balance method.
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