/hispering Winds Corp. purchased a delivery truck for $34,000 on January 1, 2022. The truck has an expected salvage value of 5,000, and is expected to be driven 100,000 miles over its estimated useful life of 8 years. Actual miles driven were 16,100 in 2022 nd 11,700 in 2023.

/hispering Winds Corp. purchased a delivery truck for $34,000 on January 1, 2022. The truck has an expected salvage value of 5,000, and is expected to be driven 100,000 miles over its estimated useful life of 8 years. Actual miles driven were 16,100 in 2022 nd 11,700 in 2023.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Novak Corp. purchased a new machine on October 1, 2022, at a cost of $137,000. The company estimated that the machine will have a salvage value of $21,500. The machine is expected to be used for 10,000 working hours during its 5-year life. Compute the depreciation expense under declining-balance using double the straight-line rate for 2022 and 2023.
On January 1, 2024, reliable delivery service purchased a truck at a cost of $65,000. Before placing the truck in service, reliable spent $2500 painting it $2500 replacing tires, and $9500 over hauling the engine the truck should remain in service for five years and have a residual value of $6000. the trucks annual mileage is expected to be 23,000 miles in each of the first four years and 13,000 miles in the fifth year – 105,000 miles in total. And deciding which depreciation method to use Harold Parker, the general manager, requesting depreciation schedule for each of the depreciation methods.( straight line units of production and double declining balance.) prepare the schedules.
33)A tour bus was purchased for $300,000. Delivery charges amounted to $10,000 and there was a cost of $15,000 for road testing and installing security equipment. It is estimated that tour bus will have a $50,000 salvage value at the end of its 10-year useful life. Depreciation expense each year using the straight-line method will be A)$31,500 B)$27,500. C)$25,000. D)$32,500
Metlock Corporation purchased a new machine for its assembly process on August 1, 2025. The cost of this machine was $141,600. The company estimated that the machine would have a salvage value of $15,600 at the end of its service life. It's life is estimated at 5 years, and it's working hours are estimated at 20,000 hours. Year-end is December 31. Could you calculate the depreciation expense for the Sum-of-the-years'-digits for 2026?
[The following information applies to the questions displayed below] On January 1, 2024, the Excel Delivery Company purchased a delivery van for $33,000. At the end of its five-year service life, it is estimated that the van will be worth $3,000. During the five-year period, the company expects to drive the van 100,000 miles. Required: Calculate annual depreciation for the five-year life of the van using each of the following methods. 1. Straight line. Answer is complete but not entirely correct. Straight-line $ 30,000 per year
On July 1, 2023 Jackson Company purchased factory equipment for $880,000 with an estimated $40,000 salvage value. The estimated useful life for the equipment is 12 years. During 2023, 2024, and 2025 the equipment is depreciated using the straight-line method. During 2026, $36,000 in maintenance is required on the machine to keep it running up to its standard operating specifications. Also, in 2026, $115,000 is spent to improve the equipment's efficiency and prolong its useful life. The new useful life is expected to be an additional 12 years beginning in 2026 and the revised salvage value is $25,000. Instructions . 4. Explain the accounting treatment of the $115,000 in equipment improvement that occurred in 2026. 5. What journal entry is required to record annual depreciation for 2026? hevni pris
Sum-of-the-year's-digits. Jon Seceda Furnace Corp. purchased machinery for $315,000 on May 1, 2020. It is estimated that it will have a useful life of 10 years, salvage value of $15,000, production of 240,000 units, and working hours of 25,000. During 2021, Seceda Corp. uses the machinery for 2,650 hours, and the machinery produces 25,500 units My understanding of the equation is (Cost-Salvage Value) x Depreciation Fraction = Depreciation Charge. My calculation: ($315,000-$15,000) x 10/55 = 54,545.45 Bartely's answer (which is correct): ($315,000-$15,000) x 10/55 x 4/12 = 18,181.81 ($315,000-$15,000) x 9/55 x 8/12 = 32,727.27 Sum-of-the-Years'-digits = 50,909.08 (add 18,181.81 and 32,727.27) My question is where does the fractions (4/12 and 8/12) come from?
Flounder Corp. bought equipment on January 1, 2022. The equipment cost $330000 and had an expected salvage value of $40000. The life of the equipment was estimated to be 6 years. The depreciable cost of the equipment is $40000. $48333. $290000. $330000.
Sheffield Corp. purchased machinery for $375,000 on May 1, 2023. It is estimated that it will have a useful life of 10 years, residual value of $15,000, production of 160,000 units, and 30,000 working hours. The machinery will have a physical life of 15 years and a salvage value of $3,000. During 2024, Sheffield used the machinery for 2,600 hours and the machinery produced 27,000 units. Sheffield prepares financial statements in accordance with IFRS. From the information given, calculate the depreciation charge for 2024 under each of the following methods, assuming Sheffield has a December 31 year end. Calculate the depreciation charge for 2024 under declining-balance, using a 20% rate. Depreciation charge for 2024 $
Crane Company bought a machine on January 1, 2022. The machine cost $166000 and had an expected salvage value of $20000. The life of the machine was estimated to be 4 years. The book value of the machine at the beginning of the third year would be
On January 1, 2021, Montana Enterprises purchased a $100,000 semi-trailer truck. In 2021 and 2022, Montana depreciated the truck using the straight-line method with an estimated 10 year useful life and an estimated $10,000 salvage value. At the beginning of 2023, Montana decided to adjust the initial estimates. The company now believes the truck will last a total of 15 years and have a salvage value of $17,000. At December 31, 2023, what will be the truck's adjusted book value reflecting the change in estimate? Multiple Choice O $73,000 $83,400 $85,000 $77,000
Riverbed Company purchased a delivery truck for $33,000 on January 1, 2022. The truck has an expected salvage value of $2,760, and is expected to be driven 108,000 miles over its estimated useful life of 10 years. Actual miles driven were 16,800 in 2022 and 12,600 in 2023. (a1) Calculate depreciation expense per mile under units-of-activity method. (Round answer to 2 decimal places, e.g. 0.50.) Depreciation expense $ eTextbook and Media List of Accounts Save for Later (a2) (1) (2) Compute depreciation expense for 2022 and 2023 using (1) the straight-line method, (2) the units-of-activity method, and (3) the double-declining-balance method. (Round depreciation cost per unit to 2 decimal places, e.g. 0.50 and depreciation rate to O decimal places, e.g. 15%. Round final answers to O decimal places, e.g. 2,125.) (3) Straight-line method Units-of-activity method $ $ Declining-balance method $ per mile 2022 Depreciation Expense $ $ $ Attempts: 0 of 5 used 2023 Submit Answer