Question: Recording Partial-Year Depreciation under Alternative Methods Refer to problem below.
Required: Prepare journal entries for 2009 and 2010, for each of the alternative methods.
1. Straight line.
2. Units of production.
3. Double declining balance.
Problem: Computing Partial-Year Depreciation under Alternative Methods A vehicle was purchased on July 1, 2009, at a cost of $50,000. The vehicle had an estimated useful life of five years and a residual value of $5,000. The company's fiscal year ends on December 31. The vehicle was expected to be driven 30,000 miles in 2009, 40,000 miles in 2010, and 10,000 miles in each of years 2011, 2012, and 2013.
Required: Compute depreciation for 2009 and 2010, under the following methods. 1. Straight line. 2. Units of production. 3. Double declining balance.