Burger Chef acquired a delivery truck on March 1, 2021, for $31,600. The company estimates a residual value of $2,400 and a six-yearservice life. It expects to drive the truck 73,000 miles. Actual mileage was 10,700 miles in 2021 and 14,600 miles in 2022.Caiculate depreciation expense using the activity-based method for 2021 and 2022, assuming a December 31 year-end. (Do notround intermediate calculations.)

Year Depreciation expenses 2021 $4,280 2022 $5,840

Answered: Calculate depreciation expense using…

Calculate depreciation expense using the activity-based method for 2021 and 2022, assuming a December 31 year-end. (Do not round intermediate calculations.)

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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Question

Burger Chef acquired a delivery truck on March 1, 2021, for $31,600. The company estimates a residual value of $2,400 and a six-year
service life. It expects to drive the truck 73,000 miles. Actual mileage was 10,700 miles in 2021 and 14,600 miles in 2022.
Caiculate depreciation expense using the activity-based method for 2021 and 2022, assuming a December 31 year-end. (Do not
round intermediate calculations.)

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