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Straight-Line, Declining-Balance, and Sum-of-the-Years-Digits Methods A light truck is purchased on January 1 at a cost of $29,830. It is expected to serve for eight years and have a salvage value of $5,430. Calculate the depreciation expense for the first and third years of the trucks life using the following methods. If required, round your answers to the nearest cent. Depreciation Expense Year 1 Year 3 1. Straight-line 2. Double-declining-balance 3. Sum-of-the-years-digits

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F2 $ 29,830.00 $ 5,430.00 $ 24,400.00 depreciation expense cost - salvage value -depreciable value year 1 year 3 $3,050.00 $3,050.00 2 double declining balance $7,457.50 $4,194.84 3 sum of the years digits $5,422.22 $4,066.67 4 straight line straight line rate double declining balance 12.50% 25.00% year annual depreciation 7,457.50 5,593.13 4,194.84 10 12 13 14 15 16 17 18 sum of the years digits 1+2+3+4+5+6+7+836 year annual depreciation 5,422.22 4,744.44 4,066.67

for formulas and calculations, refer to the next image -

F2 cost - salvage value - depreciable value 29830 5430 -D2-D3 depreciation expense year 1 year 3 straight line 2 double declining balance -C9 3 sum of the years digits-C15 4 -$D$4*$D$6 $D$4*$D$6 -C11 straight line rate double declining balance -C17 -D6*2 year annual depreciation -D2*D7 10 2 (D2-C9) D7 -(D2-C9-C10) D7 12 13 14 15 16 17 18 sum of the years digits 1+2+3+4+5+6+7+81+2+3+4+5+6+7+8 year 1 SD$4/SE$13*8 2 SDS4/SE$13*7 3 SD$4/SE$13*6 annual depreciation

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