Answer $14$ and $15$ based on Activity based

The company purchased a new semi$-$trailer truck for an acquisition cost of $$300,000.$ The company estimates the truck will have a residual value of $$40,000$ when they are done driving it $400,000$ miles.

For the past three years the company used the truck as follows:

$\backslash$table$[[$Year$,$Activity $($miles$)],[1,84,000],[2,82,000],[3,75,000],[$Total$,241,000]]$

Under activity based depreciation; what is the amount of depreciation expense they would have recorded for year $3?$ $

Under activity based depreciation; what is the book value at the end of year $3?$ $$.$

: During the first two years, the company drove the truck $98,000$ in year $1$ and $101,000$ miles in year $2,$ to deliver merchandise to its customers. The company originally purchased the truck for $$150,000.$ If the truck has an estimated life of $5$ years or $500,000$ miles, with an estimated residual value of $$60,000,$ what amount of depreciation expense should the company record in the second year using the activity$-$based method?

Chapter $7$

Page $7-2$

$17.$ $ The company purchased equipment at the beginning of Year $1$ for $$400,000.$ In Years $1-4,$ the company depreciated the asset on a straight$-$line basis with an estimated useful life of $8$ years and a $$30,000$ residual value. What is the BOOK VALUE of the equipment at the end of year $4?$