Compute depreciation using units-of-production method with residual value FlavorRite purchased a used van for use in its business on January 1, 2020. Consider the following information. Van's purchase price Van's residual value Van's useful life Expected miles in 2020 Expected miles in 2021 Expected miles in 2022 Expected miles in 2023 Total expected miles $ 17,000 $ 1,400 4 16,000 19,000 17,000 48,000 100,000 years Use the blue showed areas on the ENTERANSW.SBS tab for ingets EV Requirement Using the units-of-production method of depreciation (with miles as the production unit), calculate the depreciation expense, accumulated depreciation balance, and book value for each of the four years of the van's useful life. a. Enter all amounts as positive values. Do not use a minus sign or parentheses for any values to be subtracted. b. Use cell references from prior calculations, if applicable.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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3
4
Year
5 Start
01
6
7
8
9
10
11
12
13
14
15
16
Depreciation
expense
2020 $
2,496.00
2021 $ 2,964.00
2022 $
2,652.00
2023
$
7,488.00
Accumulated
depreciation Book value
$ 17,000
INSTRUCTIONS ENTERANSWERS
Transcribed Image Text:3 4 Year 5 Start 01 6 7 8 9 10 11 12 13 14 15 16 Depreciation expense 2020 $ 2,496.00 2021 $ 2,964.00 2022 $ 2,652.00 2023 $ 7,488.00 Accumulated depreciation Book value $ 17,000 INSTRUCTIONS ENTERANSWERS
A B
D
1 Plant Assets, Natural Resources, & Intangibles
2 Compute depreciation using units-of-production method with residual value
3
4
5678gmn² 13 14 15
9
10
11
12
F
| 18
16
17
19
С
20
21
22
23
Van's purchase price
Van's residual value
Van's useful life
Expected miles in 2020
Expected miles in 2021
Expected miles in 2022
Expected miles in 2023
Total expected miles
$ 17,000
$ 1,400
4
16,000
19,000
17,000
48,000
100,000
E
FlavorRite purchased a used van for use in its business on January 1, 2020. Consider the following
information.
24 Saving & Submitting Solution
25
1 Save file to desktop.
F
years
Use the blue sh-ded areas on the ENTERANSWERS tab for inputs
ways
INSTRUCTIONS
G
18 Requirement
Using the units-of-production method of depreciation (with miles as the production unit), calculate the
depreciation expense, accumulated depreciation balance, and book value for each of the four years of the
van's useful life.
H
I
ENTERANSWERS
a. Enter all amounts as positive values. Do not use a minus sign or parentheses for any values to be
subtracted.
b. Use cell references from prior calculations, if applicable.
J
K
L
I
Transcribed Image Text:A B D 1 Plant Assets, Natural Resources, & Intangibles 2 Compute depreciation using units-of-production method with residual value 3 4 5678gmn² 13 14 15 9 10 11 12 F | 18 16 17 19 С 20 21 22 23 Van's purchase price Van's residual value Van's useful life Expected miles in 2020 Expected miles in 2021 Expected miles in 2022 Expected miles in 2023 Total expected miles $ 17,000 $ 1,400 4 16,000 19,000 17,000 48,000 100,000 E FlavorRite purchased a used van for use in its business on January 1, 2020. Consider the following information. 24 Saving & Submitting Solution 25 1 Save file to desktop. F years Use the blue sh-ded areas on the ENTERANSWERS tab for inputs ways INSTRUCTIONS G 18 Requirement Using the units-of-production method of depreciation (with miles as the production unit), calculate the depreciation expense, accumulated depreciation balance, and book value for each of the four years of the van's useful life. H I ENTERANSWERS a. Enter all amounts as positive values. Do not use a minus sign or parentheses for any values to be subtracted. b. Use cell references from prior calculations, if applicable. J K L I
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