Question

On

JanuaryJanuary

22​,

20182018​,

SwiftySwifty

Delivery Service purchased a truck at a cost of

$ 67 comma 000$67,000.

Before placing the truck in​ service,

SwiftySwifty

spent

$ 2 comma 200$2,200

painting​ it,

$ 800$800

replacing​ tires, and

$ 4 comma 700$4,700

overhauling the engine. The truck should remain in service for five years and have a residual value of

$ 5 comma 100$5,100.

The​ truck's annual mileage is expected to be

20 comma 00020,000

miles in each of the first four years and

12 comma 80012,800

miles in the fifth

yearlong dash—92 comma 80092,800

miles in total. In deciding which depreciation method to​ use,

Jordan LipnikJordan Lipnik​,

the general​ manager, requests a depreciation schedule for each of the depreciation methods​ (straight-line, units-of-production, and​ double-declining-balance).Read the requirements

LOADING...

.

Requirement 1. Prepare a depreciation schedule for each depreciation​ method, showing asset​ cost, depreciation​ expense, accumulated​ depreciation, and asset book value.

Begin by preparing a depreciation schedule using the​ straight-line method.

Straight-Line Depreciation Schedule
		Depreciation for the Year
	Asset	Depreciable		Useful		Depreciation	Accumulated	Book
Date	Cost	Cost		Life		Expense	Depreciation	Value
1-2-2018	74,700
12-31-2018		13920	/		=
12-31-2019			/		=
12-31-2020			/		=
12-31-2021			/		=
12-31-2022			/		=

Answer 1