Homework Help is Here – Start Your Trial Now!
Business
Accounting
Crestview Estates purchased a tractor on January 1, 2018, for $65,000. The tractor's useful life is estimated to be 30,000 miles and has a residual value of $5,000. If Crestview used the tractor 5,000 miles in 2018 and 3,000 miles in 2019, what is the balance for accumulated depreciation at the end of 2019 using the activity-based method? Select one: OA. $6,000. OB. $10,000. OC. $16,000. O D. $38,000. Clear my choice

Crestview Estates purchased a tractor on January 1, 2018, for $65,000. The tractor's useful life is estimated to be 30,000 miles and has a residual value of $5,000. If Crestview used the tractor 5,000 miles in 2018 and 3,000 miles in 2019, what is the balance for accumulated depreciation at the end of 2019 using the activity-based method? Select one: OA. $6,000. OB. $10,000. OC. $16,000. O D. $38,000. Clear my choice

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
30
Clear my choice Crestview Estates purchased a tractor on January 1, 2018, for $65,000. The tractor's useful life is estimated to be 30,000 miles and has a residual value of $5,000. If Crestview used the tractor 5,000 miles in 2018 and 3,000 miles in 2019, what is the balance for accumulated depreciation at the end of 2019 using the activity-based method? Select one: O A. $6,000. OB. $10,000. O C. $16,000. O D. $38,000. Clear my choice On January 1, 20Y1, Jacob Inc. purchased a commercial truck for $48,000 and uses the straight-line depreciation method. The truck has a useful life of eight years and an estimated residual value of $8,000. On December 31, 20Y3, Jacob Inc. sold the truck for $30,000. What amount of gain or loss should Jacob Inc. record on December 31, 20Y3? Select one: O A. Gain, $5,000. O B. Loss, $3,000. O C. Loss, $18,000. O D. Gain, $22,000.
Transcribed Image Text:Clear my choice Crestview Estates purchased a tractor on January 1, 2018, for $65,000. The tractor's useful life is estimated to be 30,000 miles and has a residual value of $5,000. If Crestview used the tractor 5,000 miles in 2018 and 3,000 miles in 2019, what is the balance for accumulated depreciation at the end of 2019 using the activity-based method? Select one: O A. $6,000. OB. $10,000. O C. $16,000. O D. $38,000. Clear my choice On January 1, 20Y1, Jacob Inc. purchased a commercial truck for $48,000 and uses the straight-line depreciation method. The truck has a useful life of eight years and an estimated residual value of $8,000. On December 31, 20Y3, Jacob Inc. sold the truck for $30,000. What amount of gain or loss should Jacob Inc. record on December 31, 20Y3? Select one: O A. Gain, $5,000. O B. Loss, $3,000. O C. Loss, $18,000. O D. Gain, $22,000.
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Market Efficiency
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.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS