" Aav Ap 21 . AaBbCodex AaBbCcDc AaBbCcDd Emphasis Heading 1 Heading 3 AD A w Head Depreciation Data: . A truck (MACHINERY AND EQUIPMENT) is acquired at 1/1 Year 7 for a cost of $68,000 Estimated useful life at 1/1 Year 7 is 5 years. At 1/1 Year 7 the residual value is estimated to be $8,000 at the end of the 5-year useful life, i.e., 12/31 Year 12. The abbreviation for residual value is "RV." Estimated total miles (units) over the truck's life is 200,000 miles Actual usage cach year over the truck's life (which will not be known until after each year has passed): Year 1: 50,000 miles Year 2: 44,000 miles Year 3: 36,000 miles Year 4: 40,000 miles Year 5: 30,000 miles Total 200,000 miles Below, the amount of DEPRECIATION EXPENSE and related amounts are calculated for each of the four depreciation methods for each year of the truck's useful life. sh (United States Focus 80 FB VO $ A & 7 5 6 8 9 0 Aav Po NI AaBbCcDdEx AaBbCcDc AaBb CcDd Emphasis Heading 1 Heading 3 AvovAv a. Straight-Line Method (SL): ( Cost Residual Value ) Life DEPRECIATION EXPENSE I. b. Units-of-Production Method (UOP): DEPRECIATION RATE = Cost Residual Value Total Units (Miles) ) Per DEPR. EXPENSE ACCUM. DEPR. Book Value 68,000 $ Depreciation Expense for Each Year: Actual Miles Depresi- ation Year Year Rate Cost miles X $ 2 miles X $ 3 miles XS 4 miles XS 5 miles XS Total $ $ S A A A $ 60,000*