Ayayai Corporation purchased a truck at the beginning of 2023 for $37,800. The truck is estimated to have a residual value of $3,000 and a useful life of 290,000 km. It was driven for 69,000 km in 2023 and 77,000 km in 2024. (a) Your answer is correct. Calculate depreciation expense for 2023 and 2024 using the units of production method. (Round depreciation per km to 4 decimal places, e.g. 15.1254 and round final answers to O decimal places, e.g. 5,275.) Depreciation expense $ 2023 8280 $ 2024 9240

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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(b)
X Your answer is incorrect.
For tax purposes, the asset is considered eligible equipment for the Accelerated Investment Incentive. The asset's CCA rate is
30%. Calculate the CCA for 2023 and 2024.
Capital Cost Allowance (CCA) $
2023
5670
A
2024
9639
Transcribed Image Text:(b) X Your answer is incorrect. For tax purposes, the asset is considered eligible equipment for the Accelerated Investment Incentive. The asset's CCA rate is 30%. Calculate the CCA for 2023 and 2024. Capital Cost Allowance (CCA) $ 2023 5670 A 2024 9639
Ayayai Corporation purchased a truck at the beginning of 2023 for $37,800. The truck is estimated to have a residual value of $3,000
and a useful life of 290,000 km. It was driven for 69,000 km in 2023 and 77,000 km in 2024.
(a)
Your answer is correct.
Calculate depreciation expense for 2023 and 2024 using the units of production method. (Round depretation per km to 4 decimal
places, e.g. 15.1254 and round final answers to 0 decimal places, e.g. 5,275.)
Depreciation expense $
LA
2023
8280
2024
9240
Transcribed Image Text:Ayayai Corporation purchased a truck at the beginning of 2023 for $37,800. The truck is estimated to have a residual value of $3,000 and a useful life of 290,000 km. It was driven for 69,000 km in 2023 and 77,000 km in 2024. (a) Your answer is correct. Calculate depreciation expense for 2023 and 2024 using the units of production method. (Round depretation per km to 4 decimal places, e.g. 15.1254 and round final answers to 0 decimal places, e.g. 5,275.) Depreciation expense $ LA 2023 8280 2024 9240
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