Smooth Riding Limo Company purchased a new limosine for $60,000 on April 30, 2016. The limo is expected to have a service life of 10 years or 110,000 miles and a residual value of $5,000. The limo was driven 12,000 miles in 2016 and 15,000 miles in 2017. Smooth Riding computes depreciation to the nearest whole month.

Compute depreciation expense for 2016 and 2017 using the straight-line method

Also, calculate the book value at the end of each year, 2016 and 2017.
You must SHOW YOUR WORK! Points are given based on work shown and final answer.

Answer rating: 100% (QA)

StraightLine Depreciation Calculation for Smooth Riding Limo Company 1 Calculate the annual deprecia... View the full answer