Answer:
Through straight line method
In year 2020 =3100
In year 2021 = 3100
Through double declining method
In year 2020=6600
In year 2021= 5280
Through activity based
in year 2020=4544
in year 2021=3366
Explanation:
Through straight line method
Formula is (Cost-salvage)/Useful years
So,
Cost of good is $33000
Salvage amount is $2000
Number of useful years 10
Putting the values
(33000-2000)/10
3100
As, this is straight line method, depreciation for the next year (2021) would also remain same. 3100
Through double declining method
Formula is 2* depreciation rate
so, 2* 1/10
double declining rate is 1/5
So, 33000*1/5= 6600
6600 for 2020
Next year (2021),
Now we would subtract the amount of 6600 (already depreciated) from the 33000.
So, 33000-6600= 26400
Applying the rate, 26400*1/5 = 5280
So, next year 5280
Through activity based
we depreciate the truck according to its usage
So, in first year it was used 13800 miles. Maximum it can be used for 100,000 miles
First year 13800/100000= 13.8% used
we depreciate then 33000*13.8%= 4554
So, in 2020 4554
Next year (2021)
It was driven 10200 which is 10200/100000= 10.2%*33000
So, 0.102*33000= 3366
In 2021, depreciation of machine according to the activity based system was 3366
