In recent years, Culver Transportation purchased three used buses. Because of frequent turnover in the accounting department, a different accountant was in charge of selecting the depreciation method for each bus, and various methods have been used. Information concerning the buses is summarized in the table below. Bus 1 2 3 Acquired Jan. 1, 2020 Jan. 1, 2020 Jan. 1, 2021 Cost $98,900 120,000 90,800 Salvage Value $5,000 11,500 7,500 Useful Life in Years 5 5 4 Depreciation Method Straight-line Declining-balance Units-of-activity For the declining-balance method, the company uses the double-declining rate. For the units-of-activity method, total miles are expected to be 119,000. Actual miles of use in the first 3 years were 2021, 26,500; 2022, 32,000; and 2023, 29,000.

In recent years, Culver Transportation purchased three used buses. Because of frequent turnover in the accounting department, a different accountant was in charge of selecting the depreciation method for each bus, and various methods have been used. Information concerning the buses is summarized in the table below. Bus 1 2 3 Acquired Jan. 1, 2020 Jan. 1, 2020 Jan. 1, 2021 Cost $98,900 120,000 90,800 Salvage Value $5,000 11,500 7,500 Useful Life in Years 5 5 4 Depreciation Method Straight-line Declining-balance Units-of-activity For the declining-balance method, the company uses the double-declining rate. For the units-of-activity method, total miles are expected to be 119,000. Actual miles of use in the first 3 years were 2021, 26,500; 2022, 32,000; and 2023, 29,000.

Name: Use the data for this question: If Bus 2 was purchased on April 1 inst
Uploaded: 2024-03-05T11:50:36.000Z
Channel: Bartleby
Description: Use the data for this question: If Bus 2 was purchased on April 1 instead of January 1, what is the depreciation expense for this bus in (1)2020 and (2)2021? In recent years, Culver Transportation purchased three used buses. Because of frequent turno

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

Please do not give image format
Use the given information to get the answer for problem (b).
For the following questions calculate the depreciation expense as noted in the space provided. Show detail in your answer so that the depreciation for 2019 and 2024 is clearly identified. Show detail in your answer. Rod paid $1,950,000 for a new warehouse on April 14, 2019. He sold the warehouse on September 29, 2024. Determine the cost recovery deduction for 2019 and 2024.
For project A, what was the calculations for depreciation to get to the final answer of 720 000?
Required information [The following information applies to the questions displayed below.] Karane Enterprises, a calendar-year manufacturer based in College Station, Texas, began business in 2020. In the process of setting up the business, Karane has acquired various types of assets. Below is a list of assets acquired during 2020: Date Placed in Asset Cost Service $ 360,000 1,602,000 82,000 Office furniture Machinery Used delivery truck* *Not considered a luxury automobile. 02/03/2020 07/22/2020 08/17/2020 During 2020, Karane was very successful (and had no §179 limitations) and decided to acquire more assets in 2021 to increase its production capacity. These are the assets acquired during 2021: Date Placed in Asset Cost Service Computers and information system Luxury autot Assembly equipment Storage building $ 442,000 90,500 1,410,000 03/31/2021 05/26/2021 08/15/2021 11/13/2021 700,000 tUsed 100% for business purposes. Karane generated taxable income in 2021 of $1,785,000 for purposes…
A elearning.act.edu.om Muscat LLC purchased a machine on 1st January, 2019 for OMR 250,000. The rate of depreciation is 20% p.a. under straight line method. Replacement Cost of the machine on 31st December,2019 was OMR 350,000 and on 31st December, 2020 was OMR 500,000. The company wishes to follow Current Cost Accounting rather than the Historical Cost Accounting. a. What is the amount of Depreciation Adjustment? b. What is the amount of Additional Depreciation? C. What is the amount of Back Log Depreciation?
Which of the following formulas for the capital expenditure on intangibles is correct? Assume the current time (now) is t1 and last year is to, and that 'Intangible assets' is a carrying value net of accumulated amortisation. Select one: a. CapExOnIntangibles(t1) = IntangibleAssets (t1) + IntangibleAssets (t0) + Amortisation ExpenseOnIntanglibles (t1) b. CapExOnIntangibles(t1) = IntangibleAssets (t1) - IntangibleAssets(t0) + Amortisation ExpenseOnIntanglibles(t1) c. CapExOnIntangibles (t1) = IntangibleAssets(t1) - IntangibleAssets(t0) - Amortisation ExpenseOnIntanglibles (t1) d. CapExOnIntangibles(t1) = IntangibleAssets (t1) + AmortisationExpenseOnIntanglibles (t1) e. CapExOnIntangibles (t1) = IntangibleAssets (t1) - Amortisation ExpenseOnIntanglibles (t1)
Suppose that a truck is purchased by a company at a cost of 150.000 TL for production purposes on 16 June 2019. The straight-line depreciation rate is 10%, but the company uses accelerated method of depreciation. What would be the amount allocated to the "Idle Time Expenses and Losses" account on 30 June 2019? a) 12.500 b) 12.750 c) 13.500 d) 13.750
BILL Company constructed an asset for its own use. Construction started on January 1, 2019 and the asset was completed on December 31,2019. Expenditures incurred during the year were as follows: January 1- $400,000 April 7 -$500,000 August 14- $480,000 December 15 $150,000 What is the average accumulated expenditures for the self-constructed asset?
Hello Below is my answers to a deminishing balance method question: My Answer: Depreciation of Vehicles(672000-384000)=288000*20%=57600 Question: Provide depreciation on vehicles at 20% p.a. using the diminishing balance method, Vehicles at Cost 672 000, Accumulated Depreciation on Vehicles 384 000 from PRE-ADJUSTMENT TRIAL BALANCE ON 28 FEBRUARY 2020. Note: there are no other information concerning prvious years depreciation required.
Demonstrate how the MACRS depreciation percentages are calculated by theIRS using the half-year convention?
I need help with only question 11.4 that was given.