A truck with an estimated life of four years was acquired on July 1,

2020, for $36,000. The estimated residual value of the truck is $6,000, and the service life in terms of output is estimated at 100,000 kilometers. 

Compute the depreciation expense for the year ending December 31, 2020. using the following methods:
(Show your calculations for full marks)
                                                                             Depreciation Expense
                                                                                      2020          
 Units of output (kilometres driven: 20,000             $___________  
       in 2020 and 30,000 in 2021)
  The rate per kilometer is____________
 
b) Declining balance method (at twice the              $_______­­­­____  
   straight-line rate)

Answer rating: 100% (QA)

Part a Under the Units of output depreciation method depreciation expense f... View the full answer