Depreciation Methods

Quick$-$as$-$Lightning, a delivery service, purchased a new delivery truck for $$45,000$ on January $1,2023.$ The truck is expected to have a useful life of $10$ years or $150,000$ miles and an expected residual value of $$3,000.$ The truck was driven $15,000$ miles in $2023$ and $13,000$ miles in $2024.$

Required:

$1.$ Compute depreciation expense for $2023$ and $2024$ using the:

a$.$ Straight$-$line method.

Depreciation expense: $fill in the blank $1$

per year

b$.$ Double$-$declining$-$balance method.

Depreciation Expense

$2023$ $fill in the blank $2$

$2024$ $fill in the blank $3$

c$.$ Units$-$of$-$production method. Do not round intermediate calculations.

Depreciation Expense

$2023$ $fill in the blank $4$

$2024$ $fill in the blank $5$

$2.$ For each method, what is the book value of the machine at the end of $2023?$ At the end of $2024?$

$20232024$

a$.$ Straight$-$line method $fill in the blank $6$

$fill in the blank $7$

b$.$ Double$-$declining$-$balance method $fill in the blank $8$

$fill in the blank $9$

c$.$ Units$-$of$-$production method $fill in the blank $10$

$fill in the blank $11$

$3.$ Conceptual Connection: If Quick$-$as$-$Lightning used an $8-$year useful life or $100,000$ miles and a residual value of $$1,000,$ what would be:

$($a$)$ Depreciation expense. Do not round intermediate calculations. Round your answers to the nearest whole dollar.

a$.$ Straight$-$line method: $fill in the blank $12$

per year

$20232024$

b$.$ Double$-$declining$-$balance method $fill in the blank $13$

$fill in the blank $14$

c$.$ Units$-$of$-$production method $fill in the blank $15$

$fill in the blank $16$

$($b$)$ Book value. Round your answers to the nearest whole dollar.

$20232024$

a$.$ Straight$-$line method $fill in the blank $17$

$fill in the blank $18$

b$.$ Double$-$declining$-$balance method $fill in the blank $19$

$fill in the blank $20$

c$.$ Units$-$of$-$production method $fill in the blank $21$

$fill in the blank $22$