Straight-Line, Declining-Balance, and Sum-of-the-Years'-DigitsMethods
A light truck is purchased on January 1 at a cost of $38,730. Itis expected to serve for eight years and have a salvage value of$5,690. Calculate the depreciation expense for the first and thirdyears of the truck’s life using the following methods. If required,round your answers to the nearest cent.
| Depreciation Expense |
| Year 1 | Year 3 |
| 1. Straight-line | $ | $ |
| 2. Double-declining-balance | $ | $ |
| 3. Sum-of-the-years'-digits | $ | $ |
