Select the appropriate depreciation method to apply. Once you have selected a method, build a depreciation table based on the parameters described in the scenario. Make sure you indicate the method selected at the top of the table. All depreciation schedules should be generated for Financial Statement purposes, not tax reporting. 

The company has just invested in 4 new delivery trucks. They are identical in both features and price and are this year's model of the same trucks the company currently uses. Given past experiences with current vehicles, the maintenance staff is confident in predicting that the useful life of each truck is about 150,000 miles and will probably be in service for approximately 4 years. The purchase price of each truck is $62,500. It is expected that once active service ends for each vehicle, they can be sold to a local scrap/parts dealer for $5,000 each. Past experience has proven that newer trucks tend to be driven more in their first 2 years of service, and usage declines by about 50% in following years. Assume each truck will be driven 50,000 miles apiece in their first 2 years. As these trucks are identical and will be used in the same manner, you should depreciate them as a group of 4.

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