Question 8 Depreciation using various methods and disposals Diamond Delivery company purchased a delivery truck for $100,000 on Jan 1, 2017. They estimate a useful life of 4 years and a salvage value 0f $10,000. The company estimates that the truck will be used to drive 180,000 kilometers during its useful life in the following pattern: Year 1: 60,000, Year 2: 45,000, Year 3: 55,000, Year 4: 20,000 Complete the following chart for each of the depreciation methods:

Year	Depreciation expense	Accumulated Depreciation	Net Book Value (end of year)
2017
2018
2019
2020

Double Declining (4 marks)

Year	Net Book Value (beginning of year)	Depreciation expense	Accumulated Depreciation	Net Book Value (end of year)
2017
2018
2019
2020

Units of Activity (4 marks)

Year	Kilometers driven each year	Depreciation expense	Accumulated Depreciation	Net Book Value (end of year)
2017
2018
2019
2020

Assume the truck was in a major accident at the end of 2018. The insurance company made a payment of $70,000 to the company as compensation and the truck was sent to the junkyard. Assuming that the company uses the straight-line depreciation method, calculate the gain or loss and explain the effect on the balance sheet as well. (5 marks)