Question

Assignment > Open Assignment | FULL SCREEN PRINTER VERSION BACK NEXT Carla Vista Ltd. purchased a delivery truck on January 1, 2018, at a cost of $87,440. The truck is expected to have a residual value of $7,240 at the end of its 4-year useful life. Carla Vista has a December 31 year end. Use the diminishing-balance method and assume the depreciation rate is equal to double the straight-line rate. ASSIGNMENT RESOURCES 20211 Chapter 9 Part I Quiz (Quiz 2) Brief Exercise 9-3 Brief Exercise 9-6 a-b x Your answer is incorrect. Try again. Calculate the depreciation for each year of the truck's life. (Round answers to o decimal places, e.g. 5,275.) Review Score Review Results by Study Objective Depreciation expense 2018 21,860 2019 16,395 2020 12,296 2021 92,222 x Your answer is incorrect. Try again. Calculate the depreciation in total over the truck's life. Total depreciation expense 142,773

Answer 1

Ans:

Delivery Truck Cost=87,440

Residual Value=7,240

End of Life= 4 Years

Depreciation =1/4=25%

Depreciation rate is double to the Straight line Method Depreciation Rate

=25%*2=50%

Year	Depreciation Expense
2018	43720
2019	21860
2020	10930
2021	5465

Depreciation In total over the truck life(4 Years)=81975

Explanation: Year	Depreciation Expense
2018	(87440)*50%	43720
2019	(87440-43720)*50%	21860
2020	(87440-43720-21860)*50%	10930
2021	(87440-43720-21860-10930)*50%	5465
	Total Depreciation For 4 years	81975