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Ace Specialties bought a delivery truck for $40,000 cash. The expected useful life is 5 years and the salvage vaAce uses a calendar year and the truck was purchased on July 1, 2015

There are three problems this week involving asset accounting. Click on the tabs at the bottom of the
spreadsheet to go to each problem.

Depreciation

Ace Specialties bought a delivery truck for $40,000 cash. The expected useful life is 5 years and the salvage value is $5,000.
Ace uses a calendar year and the truck was purchased on July 1, 2015.
Calculate the depreciation for each year using the straight line method and the double declining balance method.
Show the journal entry for year one for the double declining balance method.

Straight line method
year	depreciation	remaining book value
2015
2016
2017
2018
2019
2020
2021


Double declining balance method
year	depreciation	remaining book value
2015
2016
2017
2018
2019
2020
2021

Journal Entry
date	account	debit	credit
12/31/2015