1. A company purchased a truck on March 1, 2007 at a cost of $70,000. The truck had an estimated useful life of 5 years and an estimated salvage value of $10,000. The company uses the straight-line method of depreciation. Determine the book value of the truck on December 31, 2011.
2. A company acquired equipment on April 1, 2010 for $160,000. The company estimates the useful life for the equipment is 400,000 units and the estimated salvage value is $60,000. If the company uses the units-of-activity method of depreciation, calculate the depreciation expense for 2010 if 8,000 units are produced.
3. A company purchased factory equipment for $150,000. It is estimated that the equipment will have a $30,000 salvage value at the end of its estimated 5-year useful life. If the company uses the double-declining-balance method of depreciation, calculate the amount of annual depreciation recorded for the third year after purchase