Bagodonuts company bought a used delivery truck on jan 1

Reference no: EM13574017

BagODonuts company bought a used delivery truck on Jan 1, 2010 for 19,200. the fan was expecetd to remain in service 4 years (30,000 miles) BagODonuts accountant estimated that the trucks residual value would be 2,400 at the end fo its useful life. The truck traveled 8,000 miles the first year 8,500 miles the second year, 5,500 miles the third year and 8,500 miles in the fourth year.

calculated depreciation expense for the truck 2010-2013

a. straight line method

b. double declining balance method

c. units of production method

which best tracks the wear and tear on the van? Which method BagODonuts prefer to use for income tax purposes. Explain why BagODonuts chose this one

Reference no: EM13574017

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