Linton company purchased a delivery truck for $29,000 on January 1, 2017. The truck has an expected salvage value of $1,500, and is expected to be driven $100,000 miles over it's estimated useful life of 10 years. Actual miles driven were $12,300 in 2017 and $13,200 in 2018.

Compute depreciation expense for 2017 and 2018 using(1) the straight-line method. (2) the units of activity method, and (3) the double-declining balance method.

Assume that Linton uses the straight line method. Prepare the journal entry to record 2017 depreciation.

Answer rating: 100% (QA)

Depreciation expense per mile under units of activity method Purchase price of the truck 2900000 Les... View the full answer