Questions 1 and 2 are based on the following information. Patterson Company has the following information on one of its vehicles purchased on January 1, 2002:
|
Vehicle cost |
$50,000 |
|
Useful life, years, estimated |
5 |
|
Useful life, miles, estimated |
100,000 |
|
Salvage value, estimated |
$10,000 |
|
Actual miles driven, 2002 |
30,000 |
|
2003 |
20,000 |
|
2004 |
15,000 |
|
2005 |
25,000 |
|
2006 |
12,000 |
No estimates were changed during the life of the asset.
The 2004 depreciation expense for the vehicle using the sum-of-the-years’ digits (SYD) method was
- $ 6,000
- $ 8,000
- $10,000
- $13,333
The fiscal 2003 year-end accumulated depreciation balance, using the double-declining balance method was
- $12,000
- $16,000
- $25,600
- $32,000