On 1 Jan 2020, Company A purchased a vehicle costing $25,000. A certain vehicle upgrade of $3,000 was added with the purchase. Also, a delivery fee of $500 was included in the expense. The company expects the vehicle to be operational for 4 years at the end of which it can be sold for $5,000. Calculate depreciation expense for the year ended 31 Dec 2020, 2021, 2022 and 2023 using the Straight Line and Sum-of-Year's Digits method. Straight Line Sum-of-Year's Digits Time Depreciation (xx.xx} ($) Book Value (xx.xx) ($) Depreciation (xX.xx} ($) Book Value (xx.xx} ($) 31 Dec 2020 [ Select] [ Select ] 31 Dec 2021 [ Select ] [ Select ] 31 Dec 2022 [ Select ] 31 Dec 2023
On 1 Jan 2020, Company A purchased a vehicle costing $25,000. A certain vehicle upgrade of $3,000 was added with the purchase. Also, a delivery fee of $500 was included in the expense. The company expects the vehicle to be operational for 4 years at the end of which it can be sold for $5,000. Calculate depreciation expense for the year ended 31 Dec 2020, 2021, 2022 and 2023 using the Straight Line and Sum-of-Year's Digits method. Straight Line Sum-of-Year's Digits Time Depreciation (xx.xx} ($) Book Value (xx.xx) ($) Depreciation (xX.xx} ($) Book Value (xx.xx} ($) 31 Dec 2020 [ Select] [ Select ] 31 Dec 2021 [ Select ] [ Select ] 31 Dec 2022 [ Select ] 31 Dec 2023
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
3.
![On 1 Jan 2020, Company A purchased a vehicle costing $25,000. A certain vehicle upgrade of $3,000 was added with the purchase. Also, a delivery fee of $500 was included in the expense.
The company expects the vehicle to be operational for 4 years at the end of which it can be sold for $5.000. Calculate depreciation expense for the year ended 31 Dec 2020, 2021, 2022 and
2023 using the Straight Line and Sum-of-Year's Digits method.
Straight Line
Sum-of-Year's Digits
Time
Depreciation {xx.xx} ($)
Book Value (xx.xx} ($)
Depreciation {xx.xx} ($)
Book Value {xx.xx) ($)
31 Dec 202O
[ Select]
[ Select ]
[ Select]
[ Select]
31 Dec 2021
31 Dec 2022
[ Select]
31 Dec 2023](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff92ea964-f804-4d6b-a4fb-ffa98a6c4e81%2Fdd34e19d-e9a2-49bd-b049-c49f5e347e15%2Fo5f84dd_processed.jpeg&w=3840&q=75)
Transcribed Image Text:On 1 Jan 2020, Company A purchased a vehicle costing $25,000. A certain vehicle upgrade of $3,000 was added with the purchase. Also, a delivery fee of $500 was included in the expense.
The company expects the vehicle to be operational for 4 years at the end of which it can be sold for $5.000. Calculate depreciation expense for the year ended 31 Dec 2020, 2021, 2022 and
2023 using the Straight Line and Sum-of-Year's Digits method.
Straight Line
Sum-of-Year's Digits
Time
Depreciation {xx.xx} ($)
Book Value (xx.xx} ($)
Depreciation {xx.xx} ($)
Book Value {xx.xx) ($)
31 Dec 202O
[ Select]
[ Select ]
[ Select]
[ Select]
31 Dec 2021
31 Dec 2022
[ Select]
31 Dec 2023
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