EstimatedAccumulated Depreciation atBeginning of YearMiles OperatedDuring Year21,000 miles33,900 miles7,900 miles22,500 milesTruck No.Residual ValueUseful LifeCost245,900 miles295,900 miles201,400 miles241,500 miles$76,065$14,5906,22050,605$14,43013,59061,85076,02422,81025,25090,430A. Determine the depreciation rates per mile and the amount to be credited to the accumulated depreciation section of each of the subsidiaryaccounts for the miles operated during the current year. Round the rate per mile to two decimal places and credit to accumulated depreciationto the nearest dollar.B. Journalize the entry on Dec. 31 to record depreciation for the year. Refer to the Chart of Accounts for exact wording of account titles.

1. Determine the depreciation rate per mile for each truck. Determine the amount to be credited to…

Answered: Estimated Accumulated Depreciation at…

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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takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false Revision of Depreciation Equipment with a cost of $461,100 has an estimated residual value of $41,900, has an estimated useful life of 32 years, and is depreciated by the straight-line method. a. Determine the amount of the annual depreciation. b. Determine the book value at the end of the 17 full years of use. C. Assuming that at the start of the year 18 the remaining life is estimated to be 23 years and the residual value is estimated to be $33,700, determine the depreciation expense for each of the remaining 23 years. Previc All work saved. Email Instructor Sul
Create a units of production depreciation Cargo Van Price $26,000 Machine Price $48,000Salvage value $2,000 Salvage value $3,000Useful life 10 years Useful life 8 yearsTotal miles 90,000 Total hours 13,000Yr 1 miles 12,100 Yr 1 hours 1,250Yr 2 miles 9,400 Yr 2 hours 1,46
For each of the following depreciable assets, determine the missing amount. Abbreviations for depreciation methods are SL for straight-line and DDB for double-declining-balance. Residual Service Life Depreciation Depreciation Asset Cost Value (Years) Method (Year 2) A $28,000 5 DDB $24,000 B 56,000 8 SL 5,300 C 81,000 6,000 SL 5,000 D 246,000 18,000 10 22,800 E 208,000 28,000 8 DDB
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Compute the declining-balance depreciation schedule for an asset with thefollowing data:
Complete the table
Instructions Equipment acquired on January 6 at a cost of $532,255, has an estimated useful life of 19 years and an estimated residual value of $60,010. A. What was the annual amount of depreciation for the Years 1-3 using the straight-line method of depreciation? B. What was the book value of the equipment on January 1 of Year 4? C. Assuming that the equipment was sold on January 3 of Year 4 for $441,935, journalize the entry to record the sale. Refer to the Chart of Accounts for exact wording of account titles. D. Assuming that the equipment had been sold on January 3 of Year 4 for $473,200 instead of $441,935, journalize the entry to record the sale. Refer to the Chart of Accounts for exact wording of account titles. A. What was the annual amount of depreciation for the Years 1-3 using the straight-line method of depreciation? Year 1 depreciation expense $ Year 2 depreciation expense Year 3 depreciation expense $ $ B. What was the book value of the equipment on January 1 of Year 4?…
Straight-Line Depreciation A building acquired at the beginning of the year at a cost of $134,200 has an estimated residual value of $5,200 and an estimated useful life of 10 years. Determine the following: (a) The depreciable cost (b) The straight-line rate % (c) The annual straight-line depreciation
Historical cost $ 270,000 Estimated useful life 6 years Salvage value $ 24,000 Estimated useful hours 12,000 hours 3,100 2019 1,100 2020 1,200 2021 Estimated hours per year: 2,800 2022 2,600 2023 1,200 2024 Required 1 Complete the depreciation schedule using the Units of Production Method. Page Adventure Park, Corp. ciation Schedule - Units of Production Depreciation Accumulated Depreciable Year Expense Depreciation Cost 12.31.19 12.31.20 12.31.21 12.31.22 12.31.23 12.32.24 2 Record depreciation expense for 2020. General Journal DR CR 3 What is the net book value of the equipment on 12.31.20? Historical cost (Accumulated depreciation) Net book value at 12.31.20 |24
Depreciation by units-of-activity Method Prior to adjustment at the end of the year, the balance in Trucks is $408,000 and the balance in Accumulated Depreciation—Trucks is $126,200. Details of the subsidiary ledger are as follows: TruckNo. Cost EstimatedResidualValue EstimatedUsefulLife AccumulatedDepreciationat Beginningof Year MilesOperatedDuringYear 1 $86,000 $12,900 200,000 miles — 30,000 miles 2 119,000 14,280 360,000 $23,800 36,000 3 103,000 14,420 212,000 $82,400 21,200 4 100,000 12,000 260,000 $20,000 31,200 a. Determine for each truck the depreciation rate per mile and the amount to be credited to the accumulated depreciation section of each subsidiary account for the miles operated during the current year. Keep in mind that the depreciation taken cannot reduce the book value of the truck below its residual value. Round the rate per mile to two decimal places. Enter all values as positive amounts. Truck No.…
Depreciation by Two Methods A storage tank acquired at the beginning of the fiscal year at a cost of $115,200 has an estimated residual value of $6,800 and an estimated useful life of four years. a. Determine the amount of annual depreciation by the straight-line method.$fill in the blank 1 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 your answers to the nearest dollar. Depreciation Year 1 $fill in the blank 2 Year 2 $fill in the blank 3

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