Item 18 method is appropriate when the service life of the

Assignment Help Accounting Basics

Reference no: EM13570120

Depreciation for Partial Periods

Lightning Delivery Company purchased a new delivery truck for $45,000 on April 1, 2013. The truck is expected to have a service life of 10 years or 120,000 miles and a residual value of $3,000. The truck was driven 10,000 miles in 2013 and 13,000 miles in 2014. Lightning computes depreciation to the nearest whole month.

Required:

Compute depreciation expense for 2013 and 2014 using the

(Round your answers to the nearest dollar.)

2013 $
2014 $

Straight-line method

2013 $
2014 $

Sum-of-the-years'-digits method

2013 $
2014 $

Double-declining-balance method

2013 $
2014 $

Activity method

For each method, what is the book value of the machine at the end of 2013? At the end of 2014?
(Round your answers to the nearest dollar.)

2013 $
2014 $

Straight-line method

2013 $
2014 $

Sum-of-the-years'-digits method

2013 $
2014 $

Double-declining-balance method

2013 $
2014 $

Activity method

The book value of the asset in the early years of the asset's service will be
- Select your answer -
higher
lower
about the same
Item 17
under an accelerated method as compared to the straight-line method. The
- Select your answer -
sum-of-the-years-digits
double-declining balance
straight-line activity
Item 18 method is appropriate when the service life of the asset is affected primarily by the amount the asset is used.

Reference no: EM13570120

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