Information for questions 4-7: On January 1, Hanson's Deli purchases for $30,000 a delivery truck...
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Information for questions 4-7: On January 1, Hanson's Deli purchases for $30,000 a delivery truck that will be driven an estimated 100,000 miles. The truck has an estimated useful life of ten years and an estimated salvage value of $6,000. Hanson's fiscal year is the calendar year. Calculate the amounts requested below.
4. The total accumulated depreciation after the truck has been used for 4 years, using the straight-line method would be:
a. $4,800 c. $6,800 b. $12,800 d. $9,600
5. Using the production method, compute the depreciation expense for a year in which the truck was driven 20,000 miles.
a. $1,200 c. $4,800 b. $6,400 d. $1,600
6. Depreciation Expense for year 3, using the double-declining balance method would be:
a. $4,096 c. $3,840 b. $4,500 d. $3,072
7. Assume the truck was purchased on July 1 instead of January 1. The depreciation expense for calendar year 2, using the double-declining balance method would be:
a. $4,320 c. $5,500 b. $5,400 d. $4,240
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