Reference no: EM132490472
On January 1, 2012, AB Ltd buys a truck for $42,000 cash. It has estimated residual value of $2,000, and an estimated life of 4 years, or 200,000 miles. The truck drove 40,000 miles in 2012, 60,000 miles in 2013, 80,000 miles in 2014, and 20,000 miles in 2015.
Questions:
Question 1. Assuming the company uses the straight-line method of deprecation complete the following table and show your computation/workings for the annual depreciation expense.
|
Date
|
Asset Cost Depreciation AccwnSated Net Expanse Depredation Value
|
Book
|
|
1.1.2012
|
42,000
|
42,000
|
|
1231.2012
|
|
|
|
1231.2013
|
|
|
|
1231.2014
|
|
|
|
1231.2015
|
|
|
Question 2. Assuming the company uses the units-of-production method of deprecation complete the following table and show your computation/workings for the figures shown as the annual depreciation expense.
|
Date
|
Asset Cost Depreciation AccwnSated Net Expanse Depredation Value
|
Book
|
|
1.1.2012
|
42,000
|
42,000
|
|
1231.2012
|
|
|
|
1231.2013
|
|
|
|
1231.2014
|
|
|
|
1231.2015
|
|
|
Question 3. Assuming the company uses the Double-declining balance method of deprecation complete the following table and show your computation/workings for the figures shown as the annual depreciation expense.
|
Date
|
Asset Cost Depreciation Acarnulated Net Expanse Depreciation Value
|
Book
|
|
1.1.2012
|
|
|
|
1231.2012
|
|
|
|
1231.2013
|
|
|
|
1231.2014
|
|
|