Depreciation information for Buckingham Ltd. is given in BE9.4.
Refer to given in BE9.4
Buckingham Ltd. purchased a delivery truck on January 1, 2018, at a cost of $80,000. The truck is expected to have a residual value of $8,000 at the end of its four-year useful life. Buckingham has a December 31 year end. Calculate the depreciation using the straight-line method
Assuming the delivery truck was purchased on May 1 instead of January 1 and that the company records depreciation to the nearest month, calculate the depreciation expense using the straight-line method for 2018 and 2019.
Calculate diminishing-balance depreciation.