HW: Part 1 and 2 Question 7, PF10-31A (similar to) Part 1 of 5 HW Score: 42.86%, 3 of 7 points O Points: 0 of 1 Save On January 1, 2024, Speedway Delivery Service purchased a truck at a cost of $75,000. Before placing the truck in service, Speedway spent $2,500 painting it, $1,500 replacing tires, and $9,000 Koverhauling the engine. The truck should remain in service for five years and have a residual value of $10,000. The truck's annual mileage is expected to be 27,000 miles in each of the first four years and 12,000 miles in the fifth year-120,000 miles in total. In deciding which depreciation method to use, Harvey Warner, the general manager, requests a depreciation schedule for each of the depreciation methods (straight-line, units-of-production, and double-declining-balance). Read the requirements. Requirement 1. Prepare a depreciation schedule for each depreciation method, showing asset cost, depreciation expense, accumulated depreciation, and asset book value. Begin by preparing a depreciation schedule using the straight-line method. Straight-Line Depreciation Schedule Depreciation for the Year Asset Date Cost Depreciable Cost Useful Life Depreciation Accumulated Expense Depreciation Book Value 1-1-2024 12-31-2024 12-31-2025 12-31-2026 12-31-2027 12-31-2028
HW: Part 1 and 2 Question 7, PF10-31A (similar to) Part 1 of 5 HW Score: 42.86%, 3 of 7 points O Points: 0 of 1 Save On January 1, 2024, Speedway Delivery Service purchased a truck at a cost of $75,000. Before placing the truck in service, Speedway spent $2,500 painting it, $1,500 replacing tires, and $9,000 Koverhauling the engine. The truck should remain in service for five years and have a residual value of $10,000. The truck's annual mileage is expected to be 27,000 miles in each of the first four years and 12,000 miles in the fifth year-120,000 miles in total. In deciding which depreciation method to use, Harvey Warner, the general manager, requests a depreciation schedule for each of the depreciation methods (straight-line, units-of-production, and double-declining-balance). Read the requirements. Requirement 1. Prepare a depreciation schedule for each depreciation method, showing asset cost, depreciation expense, accumulated depreciation, and asset book value. Begin by preparing a depreciation schedule using the straight-line method. Straight-Line Depreciation Schedule Depreciation for the Year Asset Date Cost Depreciable Cost Useful Life Depreciation Accumulated Expense Depreciation Book Value 1-1-2024 12-31-2024 12-31-2025 12-31-2026 12-31-2027 12-31-2028
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:HW: Part 1 and 2
Question 7, PF10-31A (similar to)
Part 1 of 5
HW Score: 42.86%, 3 of 7 points
O Points: 0 of 1
Save
On January 1, 2024, Speedway Delivery Service purchased a truck at a cost of $75,000. Before placing the truck in service, Speedway spent $2,500 painting it, $1,500 replacing tires, and $9,000
Koverhauling the engine. The truck should remain in service for five years and have a residual value of $10,000. The truck's annual mileage is expected to be 27,000 miles in each of the first four
years and 12,000 miles in the fifth year-120,000 miles in total. In deciding which depreciation method to use, Harvey Warner, the general manager, requests a depreciation schedule for each of the
depreciation methods (straight-line, units-of-production, and double-declining-balance).
Read the requirements.
Requirement 1. Prepare a depreciation schedule for each depreciation method, showing asset cost, depreciation expense, accumulated depreciation, and asset book value.
Begin by preparing a depreciation schedule using the straight-line method.
Straight-Line Depreciation Schedule
Depreciation for the Year
Asset
Date
Cost
Depreciable
Cost
Useful
Life
Depreciation Accumulated
Expense Depreciation
Book
Value
1-1-2024
12-31-2024
12-31-2025
12-31-2026
12-31-2027
12-31-2028
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