**Exercise: Calculating Accumulated Depreciation****Objective:** Compute the amount of accumulated depreciation for each bus as of December 31, 2020.**Instructions:**- Round your answers to zero decimal places, e.g., 2,125.**Table Format:**- **Column Header:** Accumulated Depreciation - **BUS 1:** $ [Enter Amount] - **BUS 2:** $ [Enter Amount] - **BUS 3:** $ [Enter Amount]This exercise involves calculating and entering the depreciation amounts for each bus in the provided fields. Make sure to follow the rounding instruction precisely for accuracy. In recent years, Sheffield Transportation purchased three used buses. Because of frequent turnover in the accounting department, a different accountant selected the depreciation method for each bus, and various methods were selected. Information concerning the buses is summarized as follows.**Table Summary:**- **Bus 1:** - Acquired: 1/1/18 - Cost: $98,900 - Salvage Value: $7,500 - Useful Life in Years: 5 - Depreciation Method: Straight-line- **Bus 2:** - Acquired: 1/1/18 - Cost: $128,000 - Salvage Value: $12,000 - Useful Life in Years: 4 - Depreciation Method: Declining-balance- **Bus 3:** - Acquired: 1/1/19 - Cost: $95,000 - Salvage Value: $7,500 - Useful Life in Years: 5 - Depreciation Method: Units-of-activityFor the declining-balance method, the company uses the double-declining rate. For the units-of-activity method, total miles are expected to be 125,000. Actual miles of use in the first 3 years were:- 2019: 27,000- 2020: 35,000- 2021: 33,000**Depreciation Calculation:**For Bus #3, calculate depreciation expense per mile under units-of-activity method. (Round answer to 2 decimal places, e.g., 0.50.)- **Depreciation expense:** $0.70 per mile(Note: The calculated depreciation expense for Bus #3 is correct as indicated in the provided answer.)

Methods of Depreciation: Depreciation refers to the reduction in the monetary value of a fixed asset…

Answered: Compute the amount of accumulated…

Business

Accounting

Compute the amount of accumulated depreciation on each bus at December 31, 2020. (I

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: On 1st Jan 2020 the cost of furniture was OMR 15000 and depreciation is charged at 12% per year.…

A: All fixed assets loses their value over the period of time. Depreciation is charged in books of…

Q: purchased on January 01, 2019 for $600,000. The expected life is 8 years. salvage value is $10000.…

A: Formula: Straight line method = ( Asset cost - Salvage value ) / Useful life

Q: On 1st Jan 2020 the cost of furniture was OMR 15000 and depreciation is charged at 12% per year.…

A: Depreciation is reduction in the original value of asset every year. This is done to maintain a…

Q: Actu

A: Qualifying asset: A Qualifying asset will be an asset that takes substantial period of time to get…

Q: Karane Enterprises, a calendar-year manufacturer based in College Station, Texas, began business in…

A: (a)

Q: Why do we not deduct 2020 depreciation expense to work out translation adkustment?

A: The translation adjustment primarily focuses on the impact of exchange rate changes on the balance…

Q: What are all the years of the depreciation “schedule" (i.e., percentages by year) for the Modified…

A: Depreciation is an annual income tax deduction that allows an organization to recover the cost or…

Q: The actual carrying of an asset is R650 000 on 1 Jan 2020. Depreciation for the 2020 Financial year…

A: Revaluation : The accounting method of increasing or decreasing the carrying value of a company's…

Q: What is the amount deductible under Section 14Q in Year of Assessment 2020? Group of answer choices…

A: Deduction under section 14Q :— in this section we get the deduction of refurbishment and renovation…

Q: You invest $7,500,000 in a commercial building that you place into service on 2/1/2023. How much can…

A: To calculate the depreciation deduction for a commercial building, you'll need to use the Modified…

Q: accumulated depreciation to date was 320,000 and depreciation expense for the present accounting…

A: Book value of assets = cost of an asset - depreciation.

Q: set has a useful life of 30 years and a salvage value of $240,000.

A: The depreicable Cost of Asset is the total capitalized cost less salvage value.The total capitalized…

Q: Kansas Enterprises purchased equipment for $74,500 on January 1, 2021. The equipment is expected to…

A: Depreciation is the reduction in value of asset over the period of time. Under straight line method,…

Q: Calculate the depreciation expense by straight-line for 2020. (.

A: Straight-line Depreciation: Under the straight-line method of depreciation, the same amount of…

Q: Ayayai Company owns a 7,500-acre tract of timber purchased in 2006 at a cost of $1,534 per acre. At…

A: Cost of road=Miles of road×Per mile=10×$7,800=$78,000

Q: 8. At the beginning of 2020, Howie Company acquired an intangible asset for P3,000,000. The…

A: Yearly depreciation expense on intangible asset = P3,000,00010 years = P300,000 Carrying Value as…

Q: The depreciation charges for the year to 31 March 2021 are to be apportioned as follows: Cost of…

A: Allocation of Expenses = Expense can be allocated according the decided according the different…

Q: Kansas Enterprises purchased equipment for $74,500 on January 1, 2021. The equipment is expected to…

A: Introduction: Depreciation: Decreasing value of fixed assets over its useful life period called as…

Q: 9. Create a PivotTable and complete the following fixed asset schedule. Future Electronics will…

A: Accumulated depreciation is a method of accounting for the annual reduction of an asset's value to a…

Q: CALCULATOR PRINTER VERSION NEXT In recent years, Concord Transportation purchased three used buses.…

A: Acquired Period till 12/31/20 BUS 1 1/1/18 3 Years BUS 2 1/1/18 3 Years BUS 3 1/1/19…

Q: 9. Create a PivotTable and complete the following fixed asset schedule. Future Electronics will…

A: The expected decline in the value of a fixed asset over the course of its use is called…

Q: An intangible asset with an estimated useful life of 30 years was acquired on January 1, 2010, for…

A: Amortization: Amortization is a process in which the cost of intangible assets is spread equally…

Q: Suppose that a company purchases a computer to be used in the manufacturing department at the…

A: Depreciation under accelerated depreciation method for 2019: Depreciation…

Q: On January 1, 2019, Williams Company purchased a copy machine. The machine costs $160,000, its…

A: Depreciation Expenses - Depreciation Expenses are the expense incurred on the wear and tear of the…

Q: Sally Kremer purchased a computer for $9,120 on July 1, 2020. She intends to depreciate it over 4…

A: Assuming cost of asset = 100 % Depreciation per annum under Straight line method = 100%/4 years =…

Q: Monty Corp. purchased machinery for $495,000 on May 1, 2023. It is estimated that it will have a…

A: Depreciation is an accounting method used to allocate the cost of a tangible asset over its useful…

Q: $2057000 at 12/31/20 and $2290000 at 12/31/21. Dep

A: Accumulated depreciation 2021 = $2,290,000 Accumulated Depreciation 2020 = $2,057,000 Depreciation…

Q: What is the depreciation expense of the equipment for 2023? what is the recoverable amount of the…

A: An asset is said to be impaired if carrying amount of an asset is higher than the recoverable…

Q: Hello, in the above question 3 on the change in policy on the depreciation why not calculate the…

A: Depreciation is the loss in the value of the asset caused due to its usage, wear and tear. There are…

Q: Suppose that a truck is purchased by a company at a cost of 150.000 TL for production purposes on 16…

A: Solution:-Using the acceleration method of depreciation, the amount allocated on account of 30 June…

Q: 9. Create a PivotTable and complete the following fixed asset schedule. Future Electronics will…

A: Depreciation is an accounting method where the value of the asset is reduced over a period of time.…

Q: Bridgeport Corporation purchased equipment costing $117,600 on January 1, 2021. At that time the…

A: Depreciation expense is the non-cash expense which is charged on the non-current assets. It is…

Q: Land Bank of the Phil. bought an office equipment for P750,000 on Nov. 25, 2020. The equipment’s…

A: 1. Depreciation Expenses - Depreciation Expenses are the expense incurred on the wear and tear of…

Q: Equipment was purchased at the beginning of 2019 for $870000. At the time of its purchase, the…

A: Yearly depreciation = Cost - Salvage valueEstimated useful life = $870,000 - $102,0006 years =…

Q: Instructions a. Preparc the following for Machine A. 1. The journal entry to record its purchase on…

A: Depreciation expense is a charge on an asset to record the wear and tear or in simple term reduction…

Q: Assume that additional information has been provided relating to the cost ($984,000). There are…

A: Straight line depreciation = (Cost of Asset - Residual Value) / Useful life

Q: Rosco Repair Company purchased a new truck for $25,400 on October 1, 2019. The truck will last 4…

A: A straight line method of depreciation is the way of depreciating the assets in which the assets are…

Q: If the replacement cost of the machine on 31st December 2019 was OMR 70,000 and on 31st December…

A: Depreciation on historical cost of machine =Replacement cost of machine on 31st December , 2019×…

Q: 31, 2020, and $55,375 at December 31, 2019. ired: there have not been any purchases, sales, or other…

A: Journal entries refers to the entries which are made at the end of the period or year and it records…

Q: On April 1, 2019, Ramtha Co. purchased new machinery for $450,000. The machinery has an estimated…

A: The depreciation expense is charged on fixed assets as reduction in value of fixed assets with the…

Q: On October 1, 2022, Sandhill Co. places a new asset into service. The cost of the asset is $103500…

A: Depreciation is the diminution in the worth of assets due to their erosion or normal wear and tear.…

Q: On July 1, 2019, Cullumber Company purchased new equipment for $90,000. Its estimated useful life…

A: Purchase value of asset is = 90000 Salvage value is 12000 So depreciable value is = 90000 -12000…

Q: purchased on January 01, 2019 for $600.000. The expected life is 8 years. salvage value is $10000.…

A: Lets understand the basics. Depreciation is a reduction in value of asset due to wear and tear,…

Q: 17. Gulf Corp. purchased machinery for $250,000 on May 1, 2019. It is estimated that it will have a…

A: As posted multiple sub parts we are answering only first three sub parts kindly repost the…

Question

**Exercise: Calculating Accumulated Depreciation**

**Objective:** Compute the amount of accumulated depreciation for each bus as of December 31, 2020.

**Instructions:**
- Round your answers to zero decimal places, e.g., 2,125.

**Table Format:**

- **Column Header:** Accumulated Depreciation

- **BUS 1:** $ [Enter Amount]
- **BUS 2:** $ [Enter Amount]
- **BUS 3:** $ [Enter Amount]

This exercise involves calculating and entering the depreciation amounts for each bus in the provided fields. Make sure to follow the rounding instruction precisely for accuracy.

In recent years, Sheffield Transportation purchased three used buses. Because of frequent turnover in the accounting department, a different accountant selected the depreciation method for each bus, and various methods were selected. Information concerning the buses is summarized as follows.

**Table Summary:**
- **Bus 1:**
- Acquired: 1/1/18
- Cost: $98,900
- Salvage Value: $7,500
- Useful Life in Years: 5
- Depreciation Method: Straight-line

- **Bus 2:**
- Acquired: 1/1/18
- Cost: $128,000
- Salvage Value: $12,000
- Useful Life in Years: 4
- Depreciation Method: Declining-balance

- **Bus 3:**
- Acquired: 1/1/19
- Cost: $95,000
- Salvage Value: $7,500
- Useful Life in Years: 5
- Depreciation Method: Units-of-activity

For the declining-balance method, the company uses the double-declining rate. For the units-of-activity method, total miles are expected to be 125,000. Actual miles of use in the first 3 years were:
- 2019: 27,000
- 2020: 35,000
- 2021: 33,000

**Depreciation Calculation:**

For Bus #3, calculate depreciation expense per mile under units-of-activity method. (Round answer to 2 decimal places, e.g., 0.50.)

- **Depreciation expense:** $0.70 per mile

(Note: The calculated depreciation expense for Bus #3 is correct as indicated in the provided answer.)

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

Step 2

Step 3

Step 4

Trending now

This is a popular solution!

Step by step

Solved in 4 steps with 4 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

ASAP please, direct thumps up :)
A depreciable property costing P1,000,000 with original residual value of P100,000 after 10 years, had been revalued at the beginning of 2020 at a replacement cost of P2,100,000. The age of the asset is four years when it was revalued. Prepare all entries at the time of revaluation and at the end of 2020 to record depreciation after revaluation.
The Costanza Corporation purchased some equipment August 1, 2021 for $17,040 and expects to use it for 8 years at which time it can be sold for an estimated $1,200. How much depreciation expense would be recorded in the company's 2021 financial statements?
3)On November 1, 2021, Ning Corp places a new asset into service. The cost of the asset is $65,000 with an estimated 5-year life and $20,000 salvage value at the end of its useful life. What is the depreciation expense for 2022 if Ning Corp uses the straight-line method of depreciation? a)$9,000 b)$16,000 c)$2,667 d)$4,000
On August 2019, a company purchased an equipment for 33,000 $, which is expected to have ten useful life years and the scrap value is 5000$. Calculate the deprecation expenses in the end of 2020, 2021, 2022, and 2023 using 1- Declining balance method. 2- Double Declining method. 3- Sum of years' digits.
Please include all the calculations for my reference. Thanks!
Please help solve
On July 1, 2020 ABC Company acquired vehicle costing $750,000. The management estimates that they can use it for 10 years and will be able to sell it at $75,000 at the end of its life Questions:1) Depreciation Expense for 20202) Accumulated Depreciation- December 31,20213) Adjusting Journal Entry on December 31,20204) Book value- December 31,2021
For the following questions calculate the depreciation expense as noted in the space provided. Show detail in your answer so that the depreciation for 2019 and 2024 is clearly identified. Show detail in your answer. Rod paid $1,950,000 for a new warehouse on April 14, 2019. He sold the warehouse on September 29, 2024. Determine the cost recovery deduction for 2019 and 2024.
Required information [The following information applies to the questions displayed below.] Karane Enterprises, a calendar-year manufacturer based in College Station, Texas, began business in 2020. In the process of setting up the business, Karane has acquired various types of assets. Below is a list of assets acquired during 2020: Date Placed in Asset Cost Service $ 360,000 1,602,000 82,000 Office furniture Machinery Used delivery truck* *Not considered a luxury automobile. 02/03/2020 07/22/2020 08/17/2020 During 2020, Karane was very successful (and had no §179 limitations) and decided to acquire more assets in 2021 to increase its production capacity. These are the assets acquired during 2021: Date Placed in Asset Cost Service Computers and information system Luxury autot Assembly equipment Storage building $ 442,000 90,500 1,410,000 03/31/2021 05/26/2021 08/15/2021 11/13/2021 700,000 tUsed 100% for business purposes. Karane generated taxable income in 2021 of $1,785,000 for purposes…
A project requires $16,412 of equipment that is classified as a 7-year property. What is the depreciation expense in Year 5 given the following MACRS depreciation allowances, starting with year one: 14.29, 24.49, 17.49, 12.49, 8.93, 8.92, 8.93, and 4.46 percent? Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box.
Calculate depreciation and fill out the form 4562 for 2022 year based on the following information: Depreciable assets: Recovery Prior Description Placed in Service Cost Method Convention Period Depreciation $32,963 MACRS/ 01/01/2020 $85,000 HY 7 200DB 01/15/2021 $13,930 HY 7 $1,991 04/15/20XX $1,900 7 Tools Equipment Sprayer MACRS/ 200DB MACRS/ 200DB HY Prior AMT Depreciation $32,963 $1,492 The S corporation has elected not to take the Section 179 deduction for the full amount of the cost of the sprayer or bonus depreciation.