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the cost of the truck

Continue to use the data from the previous page: T Transport used the truck as follows: 14. Under activity based depreciation; what is the amount of depreciation expense they would have recorded for year 3 ? : 15. Under activity based depreciation; what is the book value at the end of year 3 ? $ 16. ? During the first two years, SON, Inc, drove the truck 112,000 and 120,000 miles, respectively, to deliver merchandise to its customers. The company originally purchased the truck for $250,000. If the truck has an estimated life of 6 years or 700,000 miles, with an estimated residual value of $40,000, what amount of depreciation expense should SON record in the second year using the activity-based method? 17. $ JMM Corporation purchased equipment at the beginning of Year 1 for $120,000. In Years 1 4. JMM depreciated the asset on a straight-line basis with an estimated useful life of 8 years and a $20,000 residual value. What is the BOOKVALUE of the equipment at the beginning of Year 5 ? Use the following to answer questions 515 TTransport purchased a new semi-trailer truck for an acquisition cost of $200,000. The company estimates the truck will have a residual value of $30,000 when they are done using it at the end of 5 years or 680,000 miles

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