Jackal Energy purchased a transport truck on January 1, 2023, for $305,200 cash. Its estimated useful life is five years or 320,000 kilometres with an estimated residual value of $52,400.

Required

Calculate depreciation expense for the year ended December 31, 2023, using each of the following methods:

a. Straight-line

b. Double-declining-balance

c. Units-of-production (assume 30,000 kilometres were actually driven in 2023)

Analysis Component:

Which depreciation method will produce the highest profit for Jackal in 2023?