Depreciation on Semi-Truck
Schneider Trucking Inc. purchased a new semi-truck on January 1, 2016 for $200,000. Its useful life is expected to be 4 years and its salvage value is estimated at $25,000. What is the depreciation for 2017 using the declining-balance method at double the straight-line rate?
Solving this problem can be done with the DBB function in excel, which calculates double declining depreciation. In this case, the asset is in year 2 of 4, so the correct answer is $50,000 for year 2017 depreciation.
- Student: Astrid M.
- Textbook: ACC 291
- Course: Accounting Week 2