On January 1, Year 1, Phoenix Corporation purchased a delivery truck for $45,000. The estimated useful life of the truck is 5 years, with an estimated salvage value of $9,000. The truck is expected to be driven 200,000 miles during its useful life.
Required:If Phoenix uses double-declining-balance depreciation, what is the amount of depreciation for Year 2? What is the balance of the accumulated depreciation account at the end of Year 2?Refer to part a. Assume Phoenix used double-declining-balance depreciation and sold the truck at the beginning of Year 3 for $18,000. What is the amount of the gain or loss on the sale of the delivery van?Assume that Phoenix used units-of-production depreciation instead. The delivery van was driven 50,000 miles the first year and 40,000 miles the second year. What is the amount of depreciation expense for Year 1 and for Year 2? What is the book value of the van at the end of Year 2?

Question

Quizplus · Accepted Answer

The Answer of On January 1, Year 1, Phoenix Corporation purchased a delivery truck for $45,000. The estimated useful life of the truck is 5 years, with an estimated salvage value of $9,000. The truck is expected to be driven 200,000 miles during its useful life.
Required:If Phoenix uses double-declining-balance depreciation, what is the amount of depreciation for Year 2? What is the balance of the accumulated depreciation account at the end of Year 2?Refer to part a. Assume Phoenix used double-declining-balance depreciation and sold the truck at the beginning of Year 3 for $18,000. What is the amount of the gain or loss on the sale of the delivery van?Assume that Phoenix used units-of-production depreciation instead. The delivery van was driven 50,000 miles the first year and 40,000 miles the second year. What is the amount of depreciation expense for Year 1 and for Year 2? What is the book value of the van at the end of Year 2?

On January 1, Year 1, Phoenix Corporation Purchased a Delivery