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 salvage value of $10,000. The fiscal year ends December 31. Prepare the depreciation table for XYZ’s truck, assuming that the company uses the straight-line method for depreciation. Prepare the depreciation table for XYZ’s truck, assuming that the company uses the double-declining-balance depreciation method. Compute the depreciation expense for 2015 for XYZ’s truck, assuming the truck has an expected life of 200,000 miles and during 2015 the truck was driven 24,540 miles.
Round your depreciation expense per mile to three decimal places
Straight line depreciation method
Depreciable amount /no. of years
Depreciable amount = initial cost – salvage value
Depreciable amount =$(65,000- 10,000)Years