Question

Linton Company purchased a delivery truck for $28,000 on January 1, 2017. The truck has an expected salvage value of $2,200, and is expected to be driven 110,000 miles over its estimated useful life of 10 years. Actual miles driven were 12,300 in 2017 and 10,000 in 2018. Collapse question part (a1) Correct answer. Your answer is correct. Calculate depreciation expense per mile under units-of-activity method. (Round answer to 2 decimal places, e.g. 0.52.) Depreciation expense $Entry field with correct answer 0.23 per mile SHOW LIST OF ACCOUNTS SHOW SOLUTION LINK TO TEXT Attempts: 1 of 15 used Collapse question part (a2) Compute depreciation expense for 2017 and 2018 using (1) the straight-line method, (2) the units-of-activity method, and (3) the double-declining-balance method. (Round depreciation cost per unit to 2 decimal places, e.g. 0.50 and depreciation rate to 0 decimal places, e.g. 15%. Round final answers to 0 decimal places, e.g. 2,125.) Depreciation Expense 2017 2018 (1) Straight-line method $ $ (2) Units-of-activity method $ $ (3) Double-declining-balance method $ $

Answer 1

	Linton Company
	Purchased price of truck	$ 28,000.00
	Salvage Value	$   2,200.00
	Useful life	10	Years
	Miles Driven over its useful life	110000
	Miles driven in 2017	12300	Miles
	Miles drivenin 20118	10000	Miles
	Straight Line Method
	Formula: (Cost-Salvage Value)/Useful life
	($28000-$2000)/10	$   2,600.00	In 2017
	($28000-$2000)/10	$   2,600.00	In 2018
	Units of Activity Method
	Formula:(Cost-Salvage Value)/Total Miles Driven=(28000-2200)/110000	$            0.23	Per Mile
	Cost per mile=
	Depreciation in 2017=(12300*.23)	$   2,829.00
	Depreciation in 2018=(10000*.23)	$   2,300.00
	Double Declining Method
	Double Declining Rate=(1/uesful life)*200%	0.2
	In 2017=($28000*.20)	$   5,600.00
	In 2018=($28000-$5600)*.20	$   4,480.00