Question

The Parker Piano Company purchased a Delivery Truck on January 1, 2025 for $50,000 which included...

The Parker Piano Company purchased a Delivery Truck on January 1, 2025 for $50,000 which included all costs to get the asset ready for use. The truck has an anticipated life of 100,000 miles or 4 years. The estimated residual value at the end of the assets service life is expected to be $2,000. For assets of this type, the company utilizes the straight-line depreciation method.

  1. Assume the company chooses to use the units-of-production method. Based on the information below, complete the depreciation schedule.

Year

Miles Driven

2025

27,000

2026

24,000

2027

32,000

2028

22,000

Period Ended

Depreciation Expense

Accumulated Depreciation

End of Period Book Value

December 31, 2025

December 31, 2026

December 31, 2027

December 31, 2028
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