The Parker Piano Company purchased a Delivery Truck on January 1, 2025 for $50,000 which...
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Accounting
The Parker Piano Company purchased a Delivery Truck on January 1, 2025 for $50,000 which included all costs to get the asset ready for use. The truck has an anticipated life of 100,000 miles or 4 years. The estimated residual value at the end of the assets service life is expected to be $2,000. For assets of this type, the company utilizes the straight-line depreciation method.
Assume the company chooses to use the units-of-production method. Based on the information below, complete the depreciation schedule.
Year
Miles Driven
2025
27,000
2026
24,000
2027
32,000
2028
22,000
Period Ended
Depreciation Expense
Accumulated Depreciation
End of Period Book Value
December 31, 2025
December 31, 2026
December 31, 2027
December 31, 2028
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