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On January 1, Sky Trucking purchased a used Kenworth truck at a cost of $80,000. Sky Trucking expects the truck to remain useful for four years (625,000 miles) and to have a residual value of $10,000. Sky Trucking expects the truck to be driven 125,000 miles the first year and 218,750 miles the second year Read the requirements Requirement 1. Compute Sky Trucking's first-year depreciation expense on the truck using (a) Straight-line, (b) Units of production, and (c) Double-declining balance. Start by selecting the formulas needed to compute annual depreciation under each of the three methods. (Cost - Residual value) / Useful life in years Straight-line depreciation [(Cost - Residual value) /Useful life in miles) x Miles driven Units of production depreciation Book value x [(1/Useful life in years) x 2] = Double-declining balance depreciation a. Compute Sky Trucking's first-year depreciation expense on the truck using the straight-line method. First-year depreciation on the truck using the straight-line method is $ b. Compute Sky Trucking's first-year depreciation expense on the truck using the units of production method. (Round the depreciation per unit to the nearest cent, and round your final answer to the nearest whole dollar.) First-year depreciation on the truck using the units of production method is $ c. Compute Sky Trucking's first-year depreciation expense on the truck using the double-declining balance method. (Round the double-declining depreciation rate to two decimal places. Round your final answer to the nearest whole dollar.) First-year depreciation on the truck using the double-declining balance method is S Requirement 2. Show the truck's book value at the end of the first year under the straight-line method. Select the formula and then enter the amounts to calculate the book value at the end of the first year using the straight-line method. Book value

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