A new truck costing $60,000 with a residual value of $6,000 has an estimated useful life of five years. Using the declining-balance method at twice the straight-line rate, the depreciation expense in year 2 is: Multiple Choice $24,000 $2,400 $14,400 $14,000 None of these

A new truck costing $60,000 with a residual value of $6,000 has an estimated useful life of five years. Using the declining-balance method at twice the straight-line rate, the depreciation expense in year 2 is: Multiple Choice $24,000 $2,400 $14,400 $14,000 None of these

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Description: HelpSave & ExitA new truck costing $60,000 with a residual value of $6,000 has an estimated useful life of five years. Using the declining-balance method at twice the straight-linerate, the depreciation expense in year 2 is:Multiple Choice$24,000$2,

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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Your company has paid $150,000 for heat exchangers for use in petroleum drilling, which it believes will have $15,000 salvage value at the end of the 5-year useful life. Compute the depreciation schedule as indicate in the tables below. Straight-line Depreciation | Book Value Depreciation Book Value Year Double declining balance 0150 60% 36¢ 21.6く 12.96 1 12)k 2 32,4 19,44 3 4 5 Year 20% bonus + MACRS МАCRS Depreciation Book Value |Depreciation | Book Value Tsok 120k 40 52 39,2 31.52 1 2132K 36.3k 11.52 11.52 3.76 158.334 51.6. 44.64 4 12.34K 9.167 5 23.76
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Current Attempt in Progress Cullumber Arrow Ltd. purchased a new bus on October 1, 2024, at a total cost of $159,585. Management is considering the merits of using the diminishing-balance or units-of-production methods of depreciation instead of the straight-line method, which it currently uses for its other buses. The new bus has an estimated residual value of $16,000, and an estimated useful life of either four years or 305,500 km. Use of the bus will be sporadic so it could be much higher in some years than in others. Assume the new bus is driven as follows: 7,900 km in 2024; 100,400 km in 2025; 64,500 km in 2026: 95,700 km in 2027; and 37,000 km in 2028, Cullumber Arrow has a October 31 year end. (a) Prepare separate depreciation schedules for the life of the bus using: (Round depreciation per unit to 2 decimal placet, eg. 5.28 and final answers to O decimal places, e.g. 5,275.)
Differential Analysis for Machine Replacement Proposal Flint Tooling Company is considering replacing a machine that has been used in its factory for two years. Relevant data associated with the operations of the old machine and the new machine, neither of which has any estimated residual value, are as follows: Old Machine Cost of machine, eight-year life $38,000 Annual depreciation (straight-line) 4,750 Annual manufacturing costs, excluding depreciation 12,400 Annual nonmanufacturing operating expenses 2,700 Annual revenue 32,400 Current estimated selling price of the machine 12,900 New Machine Cost of machine, six-year life $57,000 Annual depreciation (straight-line) 9,500 Estimated annual manufacturing costs, exclusive of depreciation 3,400 Annual nonmanufacturing operating expenses and revenue are not expected to be affected by purchase of the new machine. Required: 1. Prepare a differential analysis as of November 8 comparing operations…
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Required information [The following information applies to the questions displayed below.] Speedy Delivery Company purchases a delivery van for $38,400. Speedy estimates that at the end of its four-year service life, the van will be worth $6,200. During the four-year period, the company expects to drive the van 201,250 miles. Actual miles driven each year were 52,000 miles in year 1 and 58,000 miles in year 2. Required: Calculate annual depreciation for the first two years of the van using each of the following methods. (Do not round your intermediate calculations.) 2. Double-declining-balance. Annual Year Depreciation 1 2
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Subject: acounting