On 1 July 2011 Sprintfast Couriers, which has a year-end of 30 June, purchased a delivery truck for use in its courier operations at a cost of $65 000. At the end of the truck's useful life it is expected to have a residual value of $5000. During its six-year useful life, Sprintfast Couriers Limited expected the truck to be driven 246 000 kilometres.
Required
Calculate the annual depreciation charge for each of the six years of the truck's life using the following methods: LO 5.4
(a) the straight-line method
(b) the sum-of-digits method
(c) the declining-balance method
(d) the units-of-production method using kilometres as the basis of use and assuming the following usage:
Year Kilometres
2012 28 000
2013 34 000
2014 42 000
2015 55 000
2016 68 000
2017 19 000
246 000