Overton Corporation purchased a truck for $80,000.The company expected the truck to last four years or 100,000 miles,with an estimated residual value of $8,000 at the end of that time.During the second year,the truck was driven 27,500 miles.Compute the depreciation for the second year under each of the following methods: (a)straight-line,(b)production,and (c)double-declining-balance.(Show your work.)

Question

Quizplus · Accepted Answer

The Answer of Overton Corporation purchased a truck for $80,000.The company expected the truck to last four years or 100,000 miles,with an estimated residual value of $8,000 at the end of that time.During the second year,the truck was driven 27,500 miles.Compute the depreciation for the second year under each of the following methods: (a)straight-line,(b)production,and (c)double-declining-balance.(Show your work.)

Overton Corporation Purchased a Truck for $80,000