Truckers Inc. Equipment Information
Perform the necessary calculations listed for Requirements Part A through D
ANSWER BOX
Part (A)
Cost Basis Calculations:
16[
Requirements: Calculate the A) Cost Basis, (B) Straight line, and (C) Activity Method for Depreciation
Purchase of a Hydrogen Fuel Truck Given cost base Price of S Tax and delivery $
150,000 10,000
Part (B)
Straight Line Method
Depreciable Basis yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Salvage Value Calculations:
17 18
Salvage Value
10,000
Depreciation Expense
Asset Life
5 years
Depreciation Expense
19
Depreciation Expense
Estimated Mileage Traveled per year
Depreciation Expense Depreciation Expense
Yr Yr Yr Yr
1 2 3 4 5
20,000 40,000 35,000 40,000 15,000 150,000 Miles
Part (C)
Activity Method Depreciable Basis Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Salvage Value Calculations:
20 21
Depreciation Expense
Depreciation Expense
22
Depreciation Expense
Depreciation Expense Depreciation Expense
Part (D)
Double Declining Balance Method Depreciable Basis 23 Yr 1 Yr 2 Yr 3 24 Yr 4 Yr 5 Salvage Value 25 Calculations:
Depreciation Expense
Depreciation Expense
Depreciation Expense
Depreciation Expense Depreciation Expense