Delivery Service

On January 9, 2010, Swifty Delivery Service purchased a truck at a cost of $67,000. On January 9, 2010, Trusty Delivery Service purchased a truck at a cost of $67,000. Before placing the truck in service, Trusty spent $2,200 painting it, $500 replacing tires, and $5,000 overhauling the engine. The truck should remain in service for six years and have a residual value of $14,700. The truck’s annual mileage is expected to be 15,000 miles in each of the first four years and 10,000 miles in each of the next two years – 80,000 miles in total. In deciding which depreciation method to use, Jerry Speers, the general manager, requests a depreciation schedule for each of the depreciation methods (straight-line, units-of-production, and double-declining balance).
Purchase price                                       $  67,000
Repairs and upgrades-
Paint job                                                 $     2,200
Tire replacement                                   $        500
Engine overhaul                                    $     5,000
Total asset cost                                      $  74,700
Useful life                                                              6  years
Salvage value                                          $  14,700
Expected annual mileage, years 1-4-      15,000
Expected annual mileage, years 5-6-      10,000
Total mileage-      80,000

Requirements: Prepare a depreciation schedule for each depreciation method, showing asset cost, depreciation expense, accumulated depreciation, and asset book value.