Depreciation expense. Brock Florist Company buys a new delivery truck for $27,000. It is classified as a light-duty truck.
a. Calculate the depreciation schedule using a five-year life, straight-line depreciation, and the half-year convention for the first and last years. what is the annual depreciation of the truck?
b. Calculate the depreciation schedule using a five-year life and MACRS depreciation,
c. Compare the depreciation schedules from parts (a) and (b) before and after taxes using a 30% tax rate. What do you notice about the difference between these two methods?