9.44: Matthew's Delivery Service, whose fiscal year ends on June 30, purchased a vehicle for $26,000 on September 15, 2020. The vehicle's estimated useful life was seven years, and it was expected to be driven 125,000 miles (17,900 miles in 2020 and 17,850 for each of the next six years). Matthew's Delivery estimated the salvage value at $2,800. Using the units-of-activity method, what amount of depreciation expense should Matthew's Delivery record in year 5? (Round the final answer to the nearest dollar; do not round intermediary calculations.) A $3,313 $2,943 $1,457 D $3,713 Study t · Apply d plant ass

9.44: Matthew's Delivery Service, whose fiscal year ends on June 30, purchased a vehicle for $26,000 on September 15, 2020. The vehicle's estimated useful life was seven years, and it was expected to be driven 125,000 miles (17,900 miles in 2020 and 17,850 for each of the next six years). Matthew's Delivery estimated the salvage value at $2,800. Using the units-of-activity method, what amount of depreciation expense should Matthew's Delivery record in year 5? (Round the final answer to the nearest dollar; do not round intermediary calculations.) A $3,313 $2,943 $1,457 D $3,713 Study t · Apply d plant ass

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Description: ctice-9.2: ApPply depreciation methods to plant assets. - P...Q 9.44: Matthew's Delivery Service, whose fiscal year ends on June 30, purchased a vehicle for $26,000 onSeptember 15, 2020. The vehicle's estimated useful life was seven years, and it wa

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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[The following information applies to the questions displayed below.] On January 1, Year 1, a company purchased a delivery vehicle for $53,000. At the end of its five-year service life, it is estimated that the vehicle will be worth $2,000. During the five-year period, the company expects to drive the vehicle 171,000 miles. Required: Calculate annual depreciation for the five-year life of the vehicle using each of the following methods. 3. Units of production using miles driven as a measure of output, and the following actual mileage: Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount. Year 113,000$13,500selected answer incorrectYear 244,000not attemptedYear 335,000not attemptedYear 440,000not attemptedYear 541,000not attemptedTotal $13,500
Zed Inc constructed a building at a cost of $13650000. Weighted-average accumulated expenditures were $5600000, actual interest was $562000, and avoidable interest was $272000. If the salvage value is $1150000, and the useful life is 40 years. What will be the depreciation expense for the first full year using the straight-line method?
King Manufacturing Company purchased a bus on January 1, 2016 at a cost of $125,000. The bus is expected to be driven 150,000 miles over its 4 years useful life. Salvage value is expected to be $5,000. The company uses the Units of Activity Method of depreciation and prepares its financial statements annually. Actual mileage during Year 2016 was 40,000 miles; Year 2017 was 45,000 miles; Year 2019 was 30,000 miles. The Depreciable Cost per Unit used to calculate the depreciation expense in 2019 is: * $0.83/mile $0.8/mile $4.16/mile $4/mile None of the above
Dinkins Company purchased a truck that cost $66,000. The company expected to drive the truck 100,000 miles over its 5-year useful life, and the truck had an estimated salvage value of $10,000. If the truck 31,000 miles in the current accounting period, what would be the amount of depreciation expense for the year using the units-of-production method? Multiple Choice O OOO $11,200 $20,460 $26,400 $17,360 driven
Wardell Company purchased a minicomputer on January 1, 2022, at a cost of $57,000. The computer was depreciated using the straight-line method over an estimated five-year life with an estimated residual value of $6,000. On January 1, 2024, the estimate of useful life was changed to a total of 10 years, and the estimate of residual value was changed to $1,200. Required: 1. Prepare the year-end journal entry for depreciation on December 31, 2024. No depreciation was recorded during the year. Record depreciation expense for 2024. Event General Journal Debit Credit 1 Depreciation expense 4,425 Accumulated depreciation—computer 4,425 Prepare the year-end journal entry for depreciation on December 31, 2024. Assume that the company uses the double-declining-balance method instead of the straight-line method. Event General Journal Debit Credit 1 Depreciation…
3. Montello Inc. purchases a delivery truck for $15,000. The truck has a salvage value of $3,000 and is expected to be driven for 120,000 miles. Montello uses the units-of-production depreciation method. Calculate the depreciation expense for years 1 and 2 assuming the truck was driven 23,000 miles in year 1 and 26,000 miles in year 2.
On January 1, 2022 XYZ Inc. purchased a used truck for it's operations. The costs of the truck was $50,000. They paid $8,000 to add a new engine, $4,000 for the first year of insurance and $3,000 to have the truck painted with the company logo. The salvage value is $5,000. The estimated life in years is 8 and the estimated life in miles is 130,000 miles. Assume that 14,000 miles were driven in year one and 12,000 in year two. INSTRUCTIONS 1. Compute depreciation expense for the first 2 years under: a. Straight-line Method. b. Double-declining. c. Units-of-Activity. please dont give solutions in an image thank you
Earthmoving machinery was purchased for $75,000. The machine has an estimated useful life of 10 years. If its salvage value is estimated as $5,000, a. What is the Book Value (BV) of the asset at the end of the fourth year using the SL method? b. Using Double Declining Balance (DDB) method, which year and why you may be able to switch to the SL method.
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UMPI Corporation purchased a new machine for production on 1/1/18. The cost of the machine was $175,000. The salvage value was estimated to be $25,000. Its useful life was estimated to be 5 years and its working hours was estimated at 25,000 hours. The hours used 2018 thru 2023 were 5,750, 5,000, 4,250, 5,500, 4,500, respectively. Year-end is December 31st. Fully depreciate the equipment through the full 5 years. Instructions: Compute the depreciation expense under each of the following methods below. Record the journal entry for each year to record the depreciation expense. 5.1 Straight-Line method 5.2 Activity method 5.3 Double-Declining Balance method
The cost of equipment purchased by Bramble, Inc., on June 1, 2020, is $92.400. It is estimated that the machine will have a$ 8,400 salvage value at the end of its service life. Its service life is estimated at 7 years, its total working hours are estimated at 42,000, and its total production is estimated at 600,000 units. During 2020, the machine was operated 6,900 hours and produced 63,200 units. During 2021, the machine was operated 6,320 hours and produced 55,200 units. Compute depreciation expense on the machine for the year ending December 31, 2020, and the year ending December 31, 2021, using the following methods. (Round depreciation per unit to 2 decimal places, eg. 15.25 and final answers to 0 decimal places, e.g. 45,892.) 2020 2021 (a) Straight-line (b) Units-of-output (c) Working hours (d) Sum-of-the-years-digits (e) Double-declining-balance (twice the straight-line rate) %24 %4 %24 %24 %24 %24 %24 %24 %24
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