Question - Bob's Tow Business purchased a tow truck at a cost of $85,000. The tow truck has a useful life of 5 years or 120,000 miles. The salvage value at the end of the 5 years will be $15,000. It is estimated that the truck will be driven 20,000 miles Year 1, and 25,000 miles in each of the years 2 - 5.
Prepare a spreadsheet that calculates the depreciation of the tow truck over the 5 years using the following three depreciation methods:
- Straight Line
- Unites of Production
- Double Declining Balance
Use the depreciation functions that are built into Excel where applicable. Submit your Excel spreadsheet with all of the formulas in the cells in order to receive full credit.