) Plant and equipment to be depreciated are composed of the following: Assets Date Acquired Cost Estimated usage or Life Salvage Value DepreciationMethodBuilding 7/1/06 $306,000 25 years $20,000 sum-of-the-years? digitsTruck No. 1 4/1/07 28,000 60,000 miles 3,100 miles drivenTruck No. 2 9/1/09 33,000 60,000 miles 4,200 miles drivenLift No. 1 8/17/03 7,900 10 years 900 straight-line(Sold 12/31/10)Lift No. 2 3/29/07 4,500 10 years 500 straight-lineLift No. 3 9/16/08 5,000 10 years 500 straight-lineOffice All prior to 32,800 7 years 2,000 straight-lineEquipment 1/1/10Computer 12/22/10 6,100 5 years 1,300 Double-decling balanceTruck No. 1 has been driven 45,000 miles prior to 1/1/10 and truck No. 2 has been driven 30,500 miles prior to 1/1/10. During 2010 truck No. 1 was driven 12,000 miles and truck No. 2 was driven 14,000 miles. Remember that the Rockford Company takes a half-year?s depreciation in the year of acquisition and a half-year in the year of sale.
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