Part 1:
Prepare a depreciation schedule showing depr. exp., accumulated depreciation and ending book value, year-by-year.
3 schedules for the 3 methods: straight-line, units-of-production, double declining basis. Asset is a delivery Truck.
Est. Life â¦â¦â¦â¦ 5
Orig. Cost Basis 24,500.00
Est. Residual Value 2,500.00
Est. total milage 100,000
miles driven, Yr 1 22,500
miles driven, Yr 2 20,100
miles driven, Yr 3 18,900
miles driven, Yr 4 23,400
miles driven, Yr 5 15,100
Part 2:
Assuming the truck is sold at the end of yr. 3, give the gen. journal entry to record the sale (straight-line method)
assume it was sold for:
8,500.00