3: Company B purchases a vehicle on January 1st for $120,000. The vehicle has a useful life of 3 years and a salvage value of $20,000. IF the company selects to use the double declining method, calculate the double declining rate and the depreciation expense for each year (you are welcome to build the table similar to what we did in class): Double Declining Rate: Year 1: Year 2: Year 3: 4: What would be the accumulated depreciation at the end of year 3?

3: Company B purchases a vehicle on January 1st for $120,000. The vehicle has a useful life of 3 years and a salvage value of $20,000. IF the company selects to use the double declining method, calculate the double declining rate and the depreciation expense for each year (you are welcome to build the table similar to what we did in class): Double Declining Rate: Year 1: Year 2: Year 3: 4: What would be the accumulated depreciation at the end of year 3?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 4EA: Montello Inc. purchases a delivery truck for $15,000. The truck has a salvage value of $3,000 and is...

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Montezuma Inc. purchases a delivery truck for $15,000. The truck has a salvage value of $3,000 and is expected to be driven for eight years. Montezuma uses the straight-line depreciation method. Calculate the annual depreciation expense. After three years of recording depreciation, Montezuma determines that the delivery truck will only be useful for another three years and that the salvage value will increase to $4,000. Determine the depreciation expense for the final three years of the assets life, and create the journal entry for year four.
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