**Depreciation Expense Calculation for 2022 and 2023**This exercise involves computing depreciation expense for the years 2022 and 2023 using three different methods:1. **Straight-line Method**2. **Units-of-activity Method**3. **Double-declining-balance Method****Depreciation Expense Table**| Method | 2022 | 2023 ||-------------------------------------|--------------|--------------|| (1) Straight-line method | $3750 | $3750 || (2) Units-of-activity method | $4669 | $3393 || (3) Double-declining-balance method | $8500 | $6375 |- The "Straight-line method" calculates an equal amount of depreciation for each year, resulting in a consistent depreciation expense of $3750 for both 2022 and 2023.- The "Units-of-activity method" bases depreciation on the asset's usage, with expenses of $4669 for 2022 and $3393 for 2023, reflecting changes in activity levels.- The "Double-declining-balance method" is an accelerated depreciation method, showing higher expenses initially ($8500 in 2022) and gradually decreasing expenses ($6375 in 2023).Additional options include access to an "eTextbook and Media" and a "List of Accounts." You have unlimited attempts to submit your answer.**Note:** The initial response was "partially correct." Adjustments may be needed for accuracy.**Options**- Save for Later- Submit Answer ### Problem DescriptionWhispering 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 and 11,700 in 2023.### Task**Calculate depreciable cost per mile under the units-of-activity method.** *(Round answer to 2 decimal places, e.g., 0.50.)*### Solution- **Depreciable Cost** is calculated by subtracting the salvage value from the initial cost of the truck and then dividing by the total expected mileage.- **Formula:** \[ \text{Depreciable Cost Per Mile} = \frac{\text{Cost} - \text{Salvage Value}}{\text{Total Expected Miles}} \]- **Given Values:** - Cost of Truck: $34,000 - Salvage Value: $5,000 - Total Expected Miles: 100,000- **Calculation:** \[ \text{Depreciable Cost Per Mile} = \frac{34,000 - 5,000}{100,000} = \frac{29,000}{100,000} = 0.29 \]### ResultThe depreciable cost per mile is **$0.29**.### Interface Elements- **Answer Verification:** "Your answer is correct" indicates successful calculation.- **Input Box:** Allows users to enter the calculated depreciable cost per mile.- **Supplementary Resources:** - **eTextbook and Media** - **List of Accounts**- **Attempts:** Unlimited, enabling repeated practice attempts.

The straight-line method of depreciation is the method in which depreciation is calculated on the…

/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

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