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Truck's Net Book Value at the End of Its Third Year

Kleener Co. acquired a new delivery truck at the beginning of its current fiscal year. The truck cost $26,000 and has an estimated useful life of four years and an estimated salvage value of $4,000.

Requirement 1:
(a) Calculate depreciation expense for each year of the truck's life using Straight-line depreciation.
(b) Calculate depreciation expense for each year of the truck's life using Double-declining-balance depreciation.

Requirement 2:
Calculate the truck's net book value at the end of its third year of use under each depreciation method.

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Kleener Co. acquired a new delivery truck at the beginning of its current fiscal year. The truck cost $26,000 and has an estimated useful life of four years and an estimated salvage value of $4,000.

Requirement 1:
(a) Calculate depreciation expense for each year of the truck's life using ...

$2.19