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Depreciation for Partial Periods Storm Delivery Company purchased a new delivery truck for $69,000 on April 1, 2019. The truck is expected to have a service life of 10 years or 175,200 miles and a residual value of $3,840. The truck was driven 11,300 miles in 2019 and 13,000 miles in 2020. Storm computes depreciation expense to the nearest whole month. Required: Compute depreciation expense for 2019 and 2020 using the following methods: (Round your answers to the nearest dollar.) Straight-line method 2019 $  2020 $  Sum-of-the-years'-digits method 2019 $  2020 $  Double-declining-balance method 2019 $  2020 $  Activity method 2019 $  2020 $  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.) Straight-line method 2019 $  2020 $  Sum-of-the-years'-digits method 2019 $  2020 $  Double-declining-balance method 2019 $  2020 $  Activity method 2019 $  2020 $  Next Level The book value of the asset in the early years of the asset's service will be   under an accelerated method as compared to the straight-line method. The   method is appropriate when the service life of the asset is affected primarily by the amount the asset is used.

Depreciation for Partial Periods Storm Delivery Company purchased a new delivery truck for $69,000 on April 1, 2019. The truck is expected to have a service life of 10 years or 175,200 miles and a residual value of $3,840. The truck was driven 11,300 miles in 2019 and 13,000 miles in 2020. Storm computes depreciation expense to the nearest whole month. Required: Compute depreciation expense for 2019 and 2020 using the following methods: (Round your answers to the nearest dollar.) Straight-line method 2019 $  2020 $  Sum-of-the-years'-digits method 2019 $  2020 $  Double-declining-balance method 2019 $  2020 $  Activity method 2019 $  2020 $  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.) Straight-line method 2019 $  2020 $  Sum-of-the-years'-digits method 2019 $  2020 $  Double-declining-balance method 2019 $  2020 $  Activity method 2019 $  2020 $  Next Level The book value of the asset in the early years of the asset's service will be   under an accelerated method as compared to the straight-line method. The   method is appropriate when the service life of the asset is affected primarily by the amount the asset is used.

FINANCIAL ACCOUNTING
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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  1. Depreciation for Partial Periods

    Storm Delivery Company purchased a new delivery truck for $69,000 on April 1, 2019. The truck is expected to have a service life of 10 years or 175,200 miles and a residual value of $3,840. The truck was driven 11,300 miles in 2019 and 13,000 miles in 2020. Storm computes depreciation expense to the nearest whole month.

    Required:

    1. Compute depreciation expense for 2019 and 2020 using the following methods: (Round your answers to the nearest dollar.)
      1. Straight-line method
        2019 $ 
        2020 $ 
      2. Sum-of-the-years'-digits method
        2019 $ 
        2020 $ 
      3. Double-declining-balance method
        2019 $ 
        2020 $ 
      4. 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.)
      1. Straight-line method
        2019 $ 
        2020 $ 
      2. Sum-of-the-years'-digits method
        2019 $ 
        2020 $ 
      3. Double-declining-balance method
        2019 $ 
        2020 $ 
      4. Activity method
        2019 $ 
        2020 $ 
    3. Next Level The book value of the asset in the early years of the asset's service will be   under an accelerated method as compared to the straight-line method. The   method is appropriate when the service life of the asset is affected primarily by the amount the asset is used.
 
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