On October 1, 2012, Bartow Company purchased a delivery truck for $45,000. It is estimated that the truck will be driven 320,000 km during a five-year period, after which it will be sold for $5,000. The truck was driven 30,000 km in 2012.
Calculate:
a) Depreciation for 2012 using the straight-line method.
b) Depreciation for 2012 using the double-diminishing balance method.
c) Depreciation for 2013 using the double-diminishing balance method.
d) Depreciation for 2012 using the units-of-production method.

Question

On October 1, 2012, Bartow Company purchased a delivery truck for $45,000. It is estimated that the truck will be driven 320,000 km during a five-year period, after which it will be sold for $5,000. The truck was driven 30,000 km in 2012.
 Calculate:
 a) Depreciation for 2012 using the straight-line method.
 b) Depreciation for 2012 using the double-diminishing balance method.
 c) Depreciation for 2013 using the double-diminishing balance method.
 d) Depreciation for 2012 using the units-of-production method.

Quizplus · Accepted Answer

The Answer of On October 1, 2012, Bartow Company purchased a delivery truck for $45,000. It is estimated that the truck will be driven 320,000 km during a five-year period, after which it will be sold for $5,000. The truck was driven 30,000 km in 2012.
 Calculate:
 a) Depreciation for 2012 using the straight-line method.
 b) Depreciation for 2012 using the double-diminishing balance method.
 c) Depreciation for 2013 using the double-diminishing balance method.
 d) Depreciation for 2012 using the units-of-production method.

On October 1, 2012, Bartow Company Purchased a Delivery Truck