# A company purchased a truck on March 1, 2007 at a cost of \$70,000

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

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