At December 31, 2018 Allarco Inc.'s balance sheet showed plant and equipment information as detailed in the schedule below. Allarco Inc. calculates depreciation to the nearest whole month. Please complete the schedule. Round depreciation per unit of production to the nearest cent. Cost Information Depreciation Description Purchase Date Equipment November 1, 2016 Depreciation Method Cost Salvage Value Straight-line 226,000 10,000 Double-declining- Machinery July 1, 2018 96,000 10,000 Life 10 years 5 years Accum. Dep. Dep. Expense Accum. Dep. Dec. 31, 2018 for 2019 Dec. 31, 2019 balance Trucks September 5, 2017 Units-of-production 416,800 10,000 1,017,000 miles There have been no disposals or subsequent capital expenditures on the asset since the date of purchase. The miles the truck was actually driven were as follows: 2017: 408,000 2018: 303,000 2019: 212,000 For simplicity, assume that the asset is depreciated as an individual item and will not be broken down into parts and depreciated.
At December 31, 2018 Allarco Inc.'s balance sheet showed plant and equipment information as detailed in the schedule below. Allarco Inc. calculates depreciation to the nearest whole month. Please complete the schedule. Round depreciation per unit of production to the nearest cent. Cost Information Depreciation Description Purchase Date Equipment November 1, 2016 Depreciation Method Cost Salvage Value Straight-line 226,000 10,000 Double-declining- Machinery July 1, 2018 96,000 10,000 Life 10 years 5 years Accum. Dep. Dep. Expense Accum. Dep. Dec. 31, 2018 for 2019 Dec. 31, 2019 balance Trucks September 5, 2017 Units-of-production 416,800 10,000 1,017,000 miles There have been no disposals or subsequent capital expenditures on the asset since the date of purchase. The miles the truck was actually driven were as follows: 2017: 408,000 2018: 303,000 2019: 212,000 For simplicity, assume that the asset is depreciated as an individual item and will not be broken down into parts and depreciated.
Century 21 Accounting General Journal
11th Edition
ISBN:9781337680059
Author:Gilbertson
Publisher:Gilbertson
Chapter19: Accounting For Plant Assets, Depreciation, And Intangible Assets
Section: Chapter Questions
Problem 5AP
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