a small delivery truck was purchased on January 1 at a coast

a small delivery truck was purchased on January 1 at a coast of 20,000. It has an estimated salvage value of 4,000. prepare a depreciation schedule showing the depreciation expense, accumulated depreciation,and book value for each year under the double-declining balance method. If. an amount does not require an entrey leave blank.

entry, leave it blank Small Delivery Truck Depreciation Schedule On January 1 Book Value End of Year Book Value End of Year Year Beginning of Year x Rate %)- Depreciation Expense

Solution

straight line dep = 100/4= 25%

Double decline dep = 25*2= 50%

Prepare depreciation schedule :

Year	Book value beginning of year	*	Rate	=	Depreciation expenses	Accumlated depreciation end of the year	Book value end of year
1	20000	*	50%	=	10000	10000	10000
2	10000	*	50%	=	5000	15000	5000
3	5000				1000	16000	4000
4							0