General accounting A truck has an estimated useful life of 150,000 miles. Theoriginal cost is $60,000 and the salvage value is $5,000. Themiles driven were 18,000 for year 1 and 19,500 for year 2.The unit depreciation rate is:a. $3.67.b. $0.367.c. $0.27.d. $0.40.

Step 1: Define Units-of-Production MethodUnits-of-production method charge depreciation expense…

Answered: A truck has an estimated useful life of…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

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Chapter11: Long-term Assets

Section: Chapter Questions

Problem 4EA: Montello Inc. purchases a delivery truck for $15,000. The truck has a salvage value of $3,000 and is...

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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 and in year one it expects to use the truck for 23,000 miles. Calculate the annual depreciation expense.
A machine costing 350,000 has a salvage value of 15,000 and an estimated life of three years. Prepare depreciation schedules reporting the depreciation expense, accumulated depreciation, and book value of the machine for each year under the double-declining-balance and sum-of-the-years-digits methods. For the double-declining-balance method, round the depreciation rate to two decimal places.
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A piece of equipment is purchased for $23,500 and has a salvage value of $3,200. The estimated life is 10 years and the method of depreciation is straight-line. Shipping costs total $750 and installation costs are $630. The book value at the end of year 10 is: a. $3,110 b. $3,200 c. $2,000 d. $1,110
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A piece of equipment is purchased for $23,500 and has a salvage value of $3,200. The estimated life is 10 years and the method of depreciation is straight-line. Shipping costs total $750 and installation costs are $630. The book value at the end of year 10 is: a. $3,110 b. $3,200 c. $2,000 d. $1,110 Answer: b. $3,200
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A truck has an estimated useful life of 150,000 miles. The original cost is $60,000 and the salvage value is $5,000. The miles driven were 18,000 for year 1 and 19,500 for year 2. The unit depreciation rate is: a. $3.67. b. $0.367. c. $0.27. d. $0.40.