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Depreciation for Partial Periods Cheers Delivery Company purchased a new delivery truck for $63,000 on...

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Accounting

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Depreciation for Partial Periods Cheers Delivery Company purchased a new delivery truck for $63,000 on April 1, 2019. The truck is expected to have a service life of 5 years or 150,000 miles and a residual value of $3,000. The truck was driven 8,000 miles in 2019 and 20,000 miles in 2020. Cheers computes depreciation expense to the nearest whole month. Required: 1. Compute depreciation expense for 2019 and 2020 using the following methods: (Round your answers to the nearest dollar.) a. Straight-line method 2019 2020 $ b. Sum-of-the-years'-digits method 2019 $ 2020 $ c. Double-declining-balance method 2019 $ 2020 d. Activity method 2019 $ 2020 2. For each method, what is the book value of the machine at the end of 2019? At the end of 2020? (Round your answers to the nearest dollar.) a. Straight-line method 2019 A 2020 A b. Sum-of-the-years'-digits method 2019 $ 2020 $ c. Double-declining-balance method 2019 $ 2020 $ d. Activity method $ 2019 2020 $ $

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