XYZ Company purchased a refrigerated delivery truck for $65,000 on January 1, 2015. The plan is to

Question:

XYZ Company purchased a refrigerated delivery truck for $65,000 on January 1, 2015. The plan is to use the truck for 5 years and then replace it. At the end of its useful life, the truck is expected to have a of $10,000. The fiscal year ends December 31.
a. Prepare the depreciation table for XYZ's truck, assuming that the company uses the straight-Line method for depreciation
b. Prepare the depreciation table for XYZ's truck, assuming that the company uses the double-declining-balance depreciation method.
c. Compute the depreciation expense for 2015 for XYZ's truck, assuming the truck has an expected life of 200,000 miles and during 2015 the truck was driven 24,540 miles.
Salvage Value
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important...