Question

Question 14 0/1 View Policies Show Attempt History Current Attempt in Progress Weller Company purchased a truck for $66,000. The company expected the truck to last four years or 100,000 miles, with an estimated residual value of $6,000 at the end of that time. During the second year the truck was driven 27,000 miles. Compute the depreciation for the second year, under each of the methods below and place your answers in the blanks provided. जी Units-of-activity 0.6 Double-declining-balance $ 16200

Answer 1

Answer:

Unit of activity = $16,200

Double declining balance method = $16,500

Explanation:

7 Numerator Cost - Salvage 60000 Miles Driven 27000 Unit-of-Activity Depreciation Denominator units of product 100000 Depreciation expense per unit 0.60 Annual Depreciation Expense = Depreciation expense per unit 0.60 = Depreciation Expense 16200 Year x

Double decline method Choose Factors: X Choose Factors(%) Cost x Depreciation rate 66000 50% 33000 x 50% = = Annual Depreciation Expense Depreciation expense 33000 16500 Year 1 Depreciation Year 2 Depreciation