Illustration: Barb's Florists purchased a small delivery truck on January 1, 2020. Cost $13,000 Expected salvage value $1,000 Estimated useful life in years 5 Estimated useful life in miles 100,000 Actual miles driven were 15,000 in 2020, 30,000 in 2021, 20,000 in 2022, 25,000 in 2023 and 10,000 in 2024. Required: (a). Compute depreciation using the following. (i) Straight-Line. (ii) Units-of-Activity. (iii) Declining Balance. (b). Assume that delivery truck was purchased on April 1, 2020, then compute depreciation using the following. (i) Straight-Line. (ii) Units-of-Activity. (iii) Declining Balance.

Illustration: Barb's Florists purchased a small delivery truck on January 1, 2020. Cost $13,000 Expected salvage value $1,000 Estimated useful life in years 5 Estimated useful life in miles 100,000 Actual miles driven were 15,000 in 2020, 30,000 in 2021, 20,000 in 2022, 25,000 in 2023 and 10,000 in 2024. Required: (a). Compute depreciation using the following. (i) Straight-Line. (ii) Units-of-Activity. (iii) Declining Balance. (b). Assume that delivery truck was purchased on April 1, 2020, then compute depreciation using the following. (i) Straight-Line. (ii) Units-of-Activity. (iii) Declining Balance.

Name: Illustration: Barb's Florists purchased a small delivery truck on Jan
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Description: Illustration: Barb's Florists purchased a small delivery truck on January 1, 2020.CostS13,000Expected salvage value$1,000Estimated useful life in years5Estimated useful life in miles100,000Actual miles driven were 15,000 in 2020, 30,000 in 2021, 20,

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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