Question

Question 2

Engvoll Inc. purchased a transport truck for $206,800. The company expected the truck to have a useful life of 8 years or 259,200 kilometres, with an estimated residual value of $12,400 at the end of that time. During the first and second years, the truck was driven 31,700 and 30,400 kilometres, respectively.

Calculate the depreciation expense for the second year under the straight-line, units-of-production, and double-diminishing-balance methods. (Round depreciation per kilometre to 2 decimal places, e.g. 1.25 and final answers to 0 decimal places, e.g. 5,275.)

		Year 2 Depreciation Expense
Straight-line method		$
Units-of-production method		$
Double-diminishing-balance method		$

Answer 1