Fisherman Company purchased a light truck on October 1,20220 at a cost of $72,000.The truck is expected to last six years and have a residual value of $5,200.Fisherman Company uses the calendar year as their fiscal year,and the nearest whole month method for depreciation.
(1)What is the depreciation expense for 2020,assuming the straight-line method is used?
(2)What is the depreciation expense for 2021,assuming the double-declining-balance method at twice the straight-line rate is used?

Question

Quizplus · Accepted Answer

The Answer of Fisherman Company purchased a light truck on October 1,20220 at a cost of $72,000.The truck is expected to last six years and have a residual value of $5,200.Fisherman Company uses the calendar year as their fiscal year,and the nearest whole month method for depreciation.
(1)What is the depreciation expense for 2020,assuming the straight-line method is used?
(2)What is the depreciation expense for 2021,assuming the double-declining-balance method at twice the straight-line rate is used?

Fisherman Company Purchased a Light Truck on October 1,20220 at a Cost