On January 1, 2020 Company ABC purchases a truck for $56,000, economic life is 5 years and useful life is 10 years. It has a residual value of $6,000 after it is used as a trade in. The truck has a $60,000 km life. The CFO wants you to the following analysis for depreciation determine the yearly amount for the first four year: Year Kilometer used Working 2020 45,000 2,400 2021 52,000 2,900 2022 60,000 3,200 2023 75,000 3,500 a) Working hours depreciation (Useful life is 21,000 hrs) b) Sum-of-the years digits c) Double declining balance

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A:

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