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Question - Linton Company purchased a delivery truck for $31,900 on January 1, 2014. The truck has an expected salvage value of $2,200, and is expected to be driven 107,100 miles over its estimated useful life of 10 years. Actual miles driven were 13,400 in 2014 and 14,100 in 2015.
Calculate depreciation expense per mile under units-of-activity method.
Compute depreciation expense for 2014 and 2015 using the straight-line method, the units-of-activity method, and the double-declining-balance method.
Assume that Linton uses the straight-line method. Prepare the journal entry to record 2014 depreciation.
Assume that Linton uses the straight-line method. Show how the truck would be reported in the December 31, 2014, balance sheet.
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