Depreciation for Partial Periods Chambers Delivery Company purchased a new delivery truck for $71,000 on April 1, 2019. The truck is expected to have a service life of 5 years or 170,000 miles and a residual value of $3,000. The truck was driven 8,000 miles in 2019 and 18,000 miles in 2020. Chambers computes depreciation expense to the nearest whole month. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the question below. Open spreadsheet Required: 1. Compute depreciation expense for 2019 and 2020 using the following methods: (Round your answers to the nearest dollar.) a. Straight-line method 2019 2020 b. Sum-of-the-years'-digits method 2019 2020 2$ c. Double-declining-balance method 2019 2020 d. Activity method 2019 2020 $ 2. For each method, what is the book value of the machine at the end of 2019? At the end of 2020? (Round your answers to the nearest dollar.) a. Straight-line method 2019 2020 $ b. Sum-of-the-years'-digits method 2019 2020 2$ c. Double-declining-balance method 2019 2020 d. Activity method 2019 2020 %24

Depreciation for Partial Periods Chambers Delivery Company purchased a new delivery truck for $71,000 on April 1, 2019. The truck is expected to have a service life of 5 years or 170,000 miles and a residual value of $3,000. The truck was driven 8,000 miles in 2019 and 18,000 miles in 2020. Chambers computes depreciation expense to the nearest whole month. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the question below. Open spreadsheet Required: 1. Compute depreciation expense for 2019 and 2020 using the following methods: (Round your answers to the nearest dollar.) a. Straight-line method 2019 2020 b. Sum-of-the-years'-digits method 2019 2020 2$ c. Double-declining-balance method 2019 2020 d. Activity method 2019 2020 $ 2. For each method, what is the book value of the machine at the end of 2019? At the end of 2020? (Round your answers to the nearest dollar.) a. Straight-line method 2019 2020 $ b. Sum-of-the-years'-digits method 2019 2020 2$ c. Double-declining-balance method 2019 2020 d. Activity method 2019 2020 %24

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Description: Depreciation for Partial PeriodsChambers Delivery Company purchased a new delivery truck for $71,000 on April 1,2019. The truck is expected to have a service life of 5 years or 170,000 miles and aresidual value of $3,000. The truck was driven 8,000

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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