Question - On March 1st, 2017 The Yoda Company purchased a delivery truck for $80,000. The truck is expected to last 8 years, with a $4000 salvage. Yoda plans to drive the truck 500,000 miles; in 2017 the truck was driven 60,000 miles: in 2018 101,000 miles
a) Using straight-line depreciation determine depreciation expense and the book value of the truck on: 31-Dec-17 31-Dec-18.
b) Using units of activity depreciation determine depreciation expense and the book value of the truck on: 31-Dec-17 31-Dec-18.
c) On January 1st 2019 Yoda sold the truck for $63,500. What gain or loss does Yoda show on the sale if they use straight line depreciation?