Find a declining balance method of twenty-five cent per year

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Reference no: EM132742936

On January 1, 2020 company ABC purchases a truck for $67,000, economic life is 6 years and useful life is 10 years, it has a residual value of $7,000 after it us used as a trade in. The truck has a 400,000 km life. The CFO wants you to the following analysis for depreciation determine the yearly amount for the first four years. (Show all the Calculations)

Year Kilometer used            Working hours per year
2020    45,000                            2,400
2021            72,000                              3,600
2022            65,000                               3,200
2023    52,000                                2,900

Problem A) Straight line depreciation over the life of then truck per year.

Problem B) Unit of production: depreciation per year amount required.

Problem C) Declining balance method of 25% per year, including the half year rule for the next four years, giving amount per year of depreciation.

Problem D) Working hours depreciation.

Problem E) Sum of the year's digits.

Problem F) Double declining balance.

Reference no: EM132742936

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