Tanger Interiors purchased a delivery truck for R\($38,000\) on January 1, 2025. The truck has an expected residual value of R\($6,000,\) and is expected to be driven 100,000 miles over its estimated useful life of 8 years. Actual miles driven were 15,000 in 2025 and 12,000 in 2026.

Instructions

a. Compute depreciation expense for 2025 and 2026 using (1) the straight-line method, (2) the units-ofactivity method, and (3) the double-declining-balance method.

b. Assume that Tanger uses the straight-line method.

1. Prepare the journal entry to record 2025 depreciation.

2. Show how the truck would be reported in the December 31, 2025, statement of financial position.

Compute depreciation under component method.