a small delivery truck was purchased on January 1 at a coast of 20,000. It has a

Question

a small delivery truck was purchased on January 1 at a coast of 20,000. It has an estimated salvage value of 4,000. prepare a depreciation schedule showing the depreciation expense, accumulated depreciation,and book value for each year under the double-declining balance method. If. an amount does not require an entrey leave blank.

entry, leave it blank Small Delivery Truck Depreciation Schedule On January 1 Book Value End of Year Book Value End of Year Year Beginning of Year x Rate %)- Depreciation Expense

Explanation / Answer

straight line dep = 100/4= 25%

Double decline dep = 25*2= 50%

Prepare depreciation schedule :

Year Book value beginning of year * Rate = Depreciation expenses Accumlated depreciation end of the year Book value end of year 1 20000 * 50% = 10000 10000 10000 2 10000 * 50% = 5000 15000 5000 3 5000 1000 16000 4000 4 0

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