00 Sprint 73% 10:46 PM ezto.mheducation.com Question 4 (of 5) 20.00 points A fle

Question

00 Sprint 73% 10:46 PM ezto.mheducation.com Question 4 (of 5) 20.00 points A fleet of refrigerated delivery trucks is acquired on January 5 2015, at a cost of $830,000 with an estimated useful life of eight years and an estimated salvage value of $75,000 Compute the depreciation expense for the first three years using the double-declining-balance method. (Round your answers to the nearest dollar.) for the of Beginning of Accumulated Book Value Annual Period Period Book Rate (%) Expense First Year Second Year Third Year References eBook & Resources Expanded table Difficulity: 2 Medium Learning Objective: 08-P record depreciation using line, units-of-production balance methods.

Explanation / Answer

Rate under DDM = (2/ Useful life)

                         = (2/ 8)

                          = .25 or 25%

Depreciaiton for period End of period Book value at beginning (A) Depreciation rate (B) Depreciation expense C= (A*B) Accumulated depreciaiton Book value (AC) 1 830,000 25% 207500   [830000*.25] 207500 622500   [830000-207500] 2 622500 25% 155625 363125   [207500+155625] 466875 3 466875 25% 116718.75 479843.75   [363125+116718.75] 350156.25

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