Question

Mango Inc. purchased a new truck on Oct 1, 2011 for $110,000. The truck was placed in service on the same day. The truck had an estimated life of 5 years with an estimated residual value of $10,000. Use excel spreadsheet to prepare depreciation tables which include depreciation expenses, accumulated depreciation and book value of the truck over the asset's life under straight line, double decline balance and sum-of-years digits methods assuming. Mango record depreciation to the closest whole month for assets placed in service during the year.

Not Sure of the Year.

Answer 1

Straight-line rate
Years	Depreciable Cost	x	Depreciable Rate		=	Annual Depreciation Expense	Accumulated Depreciation	Book Value
2011	100,000		5	%		5,000	$5,000	$105,000
2012	100,000		20	%		20,000	$25,000	$85,000
2013	100,000		20	%		20,000	$45,000	$65,000
2014	100,000		20	%		20,000	$65,000	$45,000
2015	100,000		20	%		20,000	$85,000	$25,000
2016	100,000		15	%		15,000	$100,000	$10,000
						65,000
Double declining balance method
Years	Book value beginning of the year	x	Depreciable Rate		=	Annual Depreciation Expense	Accumulated Depreciation	Book Value
2011	110,000		10.00	%		11,000	$11,000	$99,000
2012	99,000		40.00	%		39,600	$50,600	$59,400
2013	59,400		40.00	%		23,760	$74,360	$35,640
2014	35,640		40.00	%		14,256	$88,616	$21,384
2015	21,384		40.00	%		8,554	$97,170	$12,830
2016	12,830		22.06	%		2,830	$100,000	$10,000
						100,000
sum-of-years digits method
Years	Depreciable Cost	x	Depreciable Rate		=	Annual Depreciation Expense	Accumulated Depreciation	Book Value
2011	100,000		8.33	%		8,333	$8,333	$101,667
2012	100,000		31.67	%		31,667	$40,000	$70,000
2013	100,000		25.00	%		25,000	$65,000	$45,000
2014	100,000		18.33	%		18,333	$83,333	$26,667
2015	100,000		11.67	%		11,667	$95,000	$15,000
2016	100,000		5.00	%		5,000	$100,000	$10,000
						100,000