Norika Company purchased a truck for $40,000. The company expected the truck to have a useful life of four years or 100,000 kilometres, with an estimated residual value of $4,000 at the end of that time. During the first and second years, the truck was driven 22,000 and 27,500 kilometres, respectively.
Required:
Calculate the depreciation expense for the second year under the straight-line, units-of-production, and double-diminishing-balance methods.