Marin Company purchased a truck for $69,500. The company expected the truck to last four years or 100,000 miles, with an estimated residual value of $6,500 at the end of that time. During the second year, the truck was driven 26,000 miles.

Compute the depreciation for the second year under each of the methods below.

Units-of-activity

Double-declining-balance

Answer rating: 100% (QA)

To calculate the depreciation for the second year using the Unitsofactivity method we need to know the total expected miles for the truck during its e... View the full answer