# Computing Depreciation Expenses

E11-1

Castlevania Corporation purchased a truck at eh beginning of 2007 for $42,000 The truck is estimated to have a salvage value of $2,000 and a useful life of 160,000 miles. It was driven 23,000 miles in 2007 and 31,000 miles in 2008. Compute depreciation expense for 2007 and 2008.

E11-3

(depreciation computation SYD-DDB-Partial periods)

Judds Company purchased a new plant asset on April 1, 2007, at cost of $711,000. It was estimated to have a service life of 20 years and a salvage value of $60,000. Judd's accounting periods is the calendar year.

Instructions:

A) Compute the depreciation for this asset for 2007 and 2008 using the sum-of digits methods.

B) Compute the depreciation for this asset for 2007 and 2008 using the double-declining balance method.

https://brainmass.com/business/accounting/computing-depreciation-expenses-116433

#### Solution Preview

E 11-1

2007: [($42,000 - $2,000)*23,000]/160,000 = $5,750

2008: [($42,000 - $2,000)*31,000]/160,000 = $7,750

E ...

#### Solution Summary

The solution computes depreciation for assets using sum-of digits methods and double-declining balance methods.