A delivery truck was acquired on January 1, 2017, at a cost of $65,000. The delivery...

A delivery truck was acquired on January 1, 2017, at a cost of $65,000. The delivery truck was originally estimated to have a residual value of $5,000 and an estimated life of five years. The truck is expected to be driven a total of 200,000 kilometers during its life, distributed as:

Year	Number of Components 37,000 42,000 45,000 40,000 36,000
2017
2018
2019
2020
2021

Using the straight-line, units-of-production, and double-diminishing balance methods, answer the following questions.

The 2017 depreciation expense using the units-of-production method is:

The 2018 depreciation expense using the straight-line method is:

The 2018 depreciation expense using the double-diminishing balance method is:

The 2019 depreciation expense using the units-of-production method is:

The book value on December 31, 2018, using the straight-line method is:

The book value on December 31, 2018, using the double-diminishing balance method is:

Which method results in the lowest depreciation expense in the first two years?

Prepare the adjusting entry to record the 2020 depreciation expense based on the units-of- production method.

Date	Account Titles	Debit	Credit

Expert Solution

ekkarill92 answered 1 year ago

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