Depreciation MethodsA delivery truck costing $20,000 is expected to have a $2,000 salvage value atthe end of its useful life of four years or 100,000 miles. Assume that the truckwas purchased on January 2. Calculate the depreciation expense for the secondyear using each of the following depreciation methods: (a) straight-line, (b)double-declining balance, and (c) units-of-production. (Assume that the truckwas driven 30,000 miles in the second year) Round all answers to the nearestdollar.a. Straight-lineb. Double-declining balance $c. Units-of-production00

Depreciation expense: Depreciation expense is a non-cash expense, which is recorded on the income…

Answered: Depreciation Methods A delivery truck…

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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Instructions Equipment was acquired at the beginning of the year at a cost of $637,500. The equipment was depreciated using the double-declining-balance method based on an estimated useful life of 9 years and an estimated residual value of $43,195. Required: a. What was the depreciation for the first year? Round your intermediate calculations to 4 decimal places. Round the depreciation for the year to the nearest whole dollar. b. Assuming that the equipment was sold at the end of the second year for $631,697 determine the gain or loss on the sale of the equipment Journalize the entry on Dec. 31 to record the sale. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal SAMSUNG PreviouS Next
a storage tank acquired at the beginning of the fiscal year at a cost of 75,600 has an estimated residual value of 4000 and a estimated useful life of 20 years. a. determine the amount of annual depreciation by the straight line method b. determine the amount of depreciation for the first and second years computed by the double declining balance method . do not round the double declining balance rate. if required round answer to the nearest dollar
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