Conlin Company acquires a delivery truck at a cost of $54,340. The truck is expected to have

Question:

Conlin Company acquires a delivery truck at a cost of $54,340. The truck is expected to have a salvage value of $7,500 at the end of its 4-year useful life. Assuming the declining-balance depreciation rate is double the straight-line rate, compute annual depreciation for the first and second years under the declining-balance method. (Round answers to 0 decimal places, e.g. 125.)

Year 1…….. $ 23,420

Year 2 …….. $ 11,710

Salvage Value
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important...