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E 18-2A (year 1, SL, $3,000, DDB $6,750)

Straight Line, Declining Balance and Sum of The Years Digits Methods. A light truck was purchased on Jan. 1 at a cost of $27,000. It is expected to serve for 8 years and have a salvage value of $3,000. Calculate the depreciation expense for the first and third years of the trucks life using the following methods.

1. Straight line

2. Double declining balance (round to two decimal places).

3. Sum of the years digits (round to two decimal places).