! SHOW FULL SOLUTION !*do not use EXCEL*use data given properlythank you On March 31, 2024. Kemp Co. purchased a new vehicle for $25000. The vehicle had anexpected useful life of five years, and an expected residual value of $5000. The companyexpected that in those five years, the vehicle would be driven for 100000 kilometers basedon the following schedule202410000 km2025-20000 km2026-25000 km2027-22000 km202818000 km2029-5000 kmAssuming a December 31 fiscal year-end, prepare a depreciationschedule for the life of the asset using. use the given table as a guide:A) STRAIGHT LINE METHODYEARNO. OF MONTHSSTRAIGHT LINE VALUEВ.)NO. OFMONTHSYEARBEGINNINGBOOK VALUEDEPRECIATION RATEDEPRECIATIOENDING BOOKN EXPENSESVALUE

Depreciation is the expenses which falls under the non-cash expenses because there is no cash…

Answered: Assuming a December 31 fiscal year-end,…

Assuming a December 31 fiscal year-end, prepare a depreciation schedule for the life of the asset using. use the given table as a guide:

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter11: Depreciation, Depletion, Impairment, And Disposal

Section: Chapter Questions

Problem 8P: Kam Company purchased a machine on January 2, 2019, for 20,000. The machine had an expected life of...

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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.
Montezuma Inc. purchases a delivery truck for $15,000. The truck has a salvage value of $3,000 and is expected to be driven for eight years. Montezuma uses the straight-line depreciation method. Calculate the annual depreciation expense. After three years of recording depreciation, Montezuma determines that the delivery truck will only be useful for another three years and that the salvage value will increase to $4,000. Determine the depreciation expense for the final three years of the assets life, and create the journal entry for year four.
Kam Company purchased a machine on January 2, 2019, for 20,000. The machine had an expected life of 8 years and a residual value of 300. The double-declining-balance method of depreciation is used. Required: 1. Compute the depreciation expense for each year of the assets life and book value at the end of each year. 2. Assuming that the company has a policy of always changing to the straight-line method at the midpoint of the assets life, compute the depreciation expense for each year of the assets life. 3. Assuming that the company always changes to the straight-line method at the beginning of the year when the annual straight-line amount exceeds the double-declining-balance amount, compute the depreciation expense for each year of the assets life.
On May 10, 2019, Horan Company purchased equipment for 25,000. The equipment has an estimated service life of 5 years and zero residual value. Assume that the straight-line depreciation method is used. Required: Compute the depreciation expense for 2019 for each of the following four alternatives: 1. Horan computes depreciation expense to the nearest day. (Use 12 months of 30 days each and round the daily depreciation rate to 2 decimal places.) 2. Horan computes depreciation expense to the nearest month. Assets purchased in the first half of the month are considered owned for the whole month. 3. Horan computes depreciation expense to the nearest whole year. Assets purchased in the first half of the year are considered owned for the whole year. 4. Horan records one-half years depreciation expense on all assets purchased during the year.
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On July 1, 2020 Waterway's Greenhouse purchased a new delivery truck for $100,000. Waterway estimates that the delivery truck will have a five-year useful life, or 225,000 kilometres, and a residual value of $10,000. Waterway's Greenhouse has a December 31 year end. Waterway drove the truck 14,000 km in 2020 and 38,000 km in 2021. Calculate depreciation expense using the straight-line method for 2020 and 2021. 2020 2021 Depreciation Expense eTextbook and Media Calculate depreciation expense using the double-diminishing-balance method for 2020 and 2021. 2020 2021 Depreciation Expense %24 eTextbook and Media Calculate depreciation expense using the units-of-production method for 2020 and 2021. (Round depreciable amount per unit to 2 decimal places, eg. 5.27 and the final answers to O decimal places, eg. 5,275.) 2020 2021 Depreciation Expense %24 %24