A manufacturing company has purchased three assets: Truck Building $25,000 $900,000 200,000 miles 50 years 5 years 39 years $2,000 $100,000 Unit production UP Lathe Item Initial Cost Book life MACRS class Salvage value Book depreciation DDB The truck was depreciated by the units-of-production method. Usage of the truck was 22,000 miles, 30,000 and 45,000 miles during the first three years, respectively. $43,000 12 years 7 years $3,000 SL Calculate the depreciation stated for each asset for the first three years. For the building consider it was bought on May of Year 1
A manufacturing company has purchased three assets: Truck Building $25,000 $900,000 200,000 miles 50 years 5 years 39 years $2,000 $100,000 Unit production UP Lathe Item Initial Cost Book life MACRS class Salvage value Book depreciation DDB The truck was depreciated by the units-of-production method. Usage of the truck was 22,000 miles, 30,000 and 45,000 miles during the first three years, respectively. $43,000 12 years 7 years $3,000 SL Calculate the depreciation stated for each asset for the first three years. For the building consider it was bought on May of Year 1
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:A manufacturing company has purchased three assets:
Lathe
Truck
$43,000
$25,000
12 years
200,000 miles
7 years
5 years
$3,000
$2,000
Unit production
UP
Item
Initial Cost
Book life
MACRS class
Salvage value
Book
depreciation
DDB
The truck was depreciated by the units-of-production method. Usage of the truck was 22,000 miles,
30,000 and 45,000 miles during the first three years, respectively.
n Dn
Calculate the depreciation stated for each asset for the first three years. For the building consider it was bought
on May of Year 1.
0
17,167
25,972
3
Lathe Book
Depreciation
BV
35,833
29,861
n Dn
Building
$900,000
50 years
39 years
$100,000
0
SL
12,530
23,450
Truck Book
Depreciation
BV
0..
22,470
19,020
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