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Question - Floppy Company purchased a refrigerated delivery truck for $65,000 on April 1, 2016. The plan is to use the truck for 5 years and then replace it. At the end of its useful life the truck is expected to have a salvage value of $10,000.
a) Prepare the depreciation table for Floppy's truck assuming that the company uses the straight-line method for depreciation.
b) Prepare the depreciation table for Floppy's truck assuming that the company uses the double-declining-balance depreciation method.
c) Compute the depreciation expense for 2016 for Floppy's truck assuming the truck has an expected life of 200,000 miles and during 2016 the truck was driven 24,540 miles. Round your depreciation expense per mile to three decimal places.
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