Norika company
Norika Company purchased a truck for $44,000. The company expected the truck to have a useful life of four years or 112,500 kilometres, with an estimated residual value of $ 8,000 at the end of that time. During the first and second years, the truck was driven 24,000 and 31,500 kilometres, respectively.
Calculate the depreciation expense for the second year under the straight-line, units-of-production, and double-diminishing-balance
methods.
Assume the purchase of the truck was made at the beginning of the first month of the first year. (Round depreciation per kilometre to 2 decimal places, e.g. 1.25 and final answers to 0 decimal places, e.g. 5,275.)
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