Depreciation calculation methods:
Kleener Co. acquired a new delivery truck at the beginning of its current fiscal year. The truck cost $26,000 and has an estimated useful life of four years and an estimated salvage value of $4,000.
Requirement 1:
(1) Calculate depreciation expense for each year of the truck's life using Straight-line depreciation.
(2) Calculate depreciation expense for each year of the truck's life using Double-declining-balance depreciation.
Year Depreciation Expense
1 $ 13000
2 $ 6,500
3 $ 2,500
Requirement 2:
Calculate the truck's net book value at the end of its third year of use under each depreciation method.
Depreciation method Net book value
Straight-line depreciation $
Double-declining-balance depreciation $4,000