Question: Linton Company purchased a delivery truck for 34 000 on January

Linton Company purchased a delivery truck for $34,000 on January 1, 2014. The truck has an expected salvage value of $2,000, and is expected to be driven 100,000 miles over its estimated useful life of 8 years. Actual miles driven were 15,000 in 2014 and 12,000 in 2015.

Instructions
(a) Compute depreciation expense for 2014 and 2015 using
(1) The straight-line method,
(2) The units-of-activity method,
(3) The double-declining-balance method.
(b) Assume that Linton uses the straight-line method.
(1) Prepare the journal entry to record 2014 depreciation.
(2) Show how the truck would be reported in the December 31, 2014, balance sheet.




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  • CreatedJanuary 30, 2014
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