Corales Company acquires a delivery truck at a cost of 80000

Corales Company acquires a delivery truck at a cost of $80,000. The truck is expected to have a salvage value of $7,000 at the end of its 5-year useful life. Assuming the declining-balance depreciation rate is double the straight-line rate, compute annual depreciation for the first and second years under the declining-balance method.

Year 1

Year 2

		Year 1		Year 2
Annual depreciation expense		$ $\"\"$		$ $\"\"$

Double decline rate = 100/5*2 = 40%

Calculate depreciation expense :

	Year 1	Year 2
Annual Depreciation expense	80000*40% = 32000	8000060%40% = 19200

Corales Company acquires a delivery truck at a cost of $80,000. The truck is expected to have a salvage value of $7,000 at the end of its 5-year useful life. As

Corales Company acquires a delivery truck at a cost of 80000

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