On January 1, 2021, XYZ Motors purchased a truck for $42,000. The truck was estimated to have a 6-year useful life with 120,000 miles of total usage. The salvage value was estimated to be $6,000. Using the units-of-production method, what is the depreciation expense per mile?

On January 1, 2021, XYZ Motors purchased a truck for $42,000. The truck was estimated to have a 6-year useful life with 120,000 miles of total usage. The salvage value was estimated to be $6,000. Using the units-of-production method, what is the depreciation expense per mile?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 4EB: Montello Inc. purchases a delivery truck for $25,000. The truck has a salvage value of $6,000 and is...

See similar textbooks

Related questions

Q: What is the amount of unpaid interest

A: LET'S UNDERSTAND THE QUESTION A company purchased $80,000 of 6% bonds on April 1.Interest is paid…

Q: A firm has sales of $1,000, total assets of $600, and a debt ratio of 0.40. If its return on equity…

A: Step 1: Definition of Net IncomeNet income is the total profit a company earns after deducting all…

Q: Calculate the number of units that must be sold in order to realise an ??? General accounting

A: Step 1: Definition of Break-even Point and Required SalesThe break-even point is the number of units…

Q: What distinguishes integrated control frameworks from isolated checks? a) Separation improves…

A: Explanation of Integrated Control Framework:An integrated control framework is a structured system…

Q: Jones Manufacturing Co. Ltd. makes a product by way of three consecutive processes. Inspection takes…

Q: Using these data write everglow bakeries accounting equation of this accounting question

A: Step 1: Definition of Accounting EquationThe Accounting Equation is the fundamental principle of…

Q: A company's net sales were... Accounting

A: Step 1: Definition of Gross Margin RatioThe gross margin ratio is a profitability metric that shows…

Q: Accounting solution

A: Final Answer:(b) $3,076,923$

Q: Cost per equipment unit for materials would be

A: To determine the cost per equivalent unit for materials, follow these steps using the…

Q: What is the amount of shareholders equity on these financial accounting question?

A: Step 1: Introduction to accounting equationAccounting equation refers to that equation which…

Q: Question: Panther Apparel sold manufacturing equipment for $30,000. Panther originally purchased the…

A: Explanation of Selling Price: Selling price is the amount a business receives from a buyer in…

Q: Plz don't use AI. How are the balance sheet and income statement connected?

A: The balance sheet is a financial statement that provides a snapshot of what a company owns (assets),…

Q: ABC Corp.'s cash account has a Cash Book balance of $1,200 as of December 31. The bank statement for…

A: To determine the reconciled balance that will appear on ABC Corp.'s balance sheet as of December 31,…

Q: Tracing prenumbered sales invoices to shipping documents provides evidence that:a. No duplicate…

A: Tracing prenumbered sales invoices to shipping documents ensures that every recorded sale…

Q: None

A: Concept of Payments to Suppliers:Payments to suppliers refer to the money a company pays to its…

Q: I need correct answer general accounting question

A: Step 1: Define GainGain refers to the increase in the value of an investment or asset compared to…

Q: calculation of Initial cost

A: Baber Corporation has the following data for a proposed investment:Useful life: 11 yearsYearly net…

Q: Given:Population- 500 accountsSample- 100 accountsBook Value of Sample- $20,000Population Book…

A: Final Answer: The projected population value is d. $65,000.

Q: Horngren's Financial & Managerial Accounting: The Managerial Chapters, 8th Edition E-M:3-21…

A: Part 1: Calculation of Equivalent Units of Production (EUP)Direct Materials (DM)Direct materials are…

Q: What is the correct answer of this a b ? General accounting question

A: Step 1: Define Shareholders' Equity and Net Working CapitalShareholders' Equity represents the…

Q: How much manufacturing overhead would be allocated

A: Explanation of Manufacturing Overhead:Manufacturing overhead refers to all indirect costs incurred…

Q: Compute the gross margin general accounting question

A: Step 1: Definition of Gross MarginGross Margin (also called Gross Profit) represents the difference…

Q: Please need answer the general accounting question

A: Step 1: Define Predetermined Overhead RateThe predetermined overhead rate is a rate used to allocate…

Q: Need help with this question solution general accounting

A: Step 1: Definition of Absorption CostingAbsorption costing is a method where all manufacturing…

Q: Subject accounting

A: Step 1: Definition of Operating Leverage FactorOperating leverage measures the sensitivity of a…

Q: Accounting prob.

A: Multiple-Choice Question AnswerWhat distinguishes integrated control frameworks from isolated…

Q: Hello tutor need help. Financial accounting

Q: Crane Company accumulates the following data concerning a mixed cost, using units produced as the…

A: Solution: Computing the Variable Cost per Unit Using the High-Low MethodThe high-low method…

Q: General accounting questions

A: we use the basic accounting equation:Assets = Liabilities + EquityGiven data:Assets =…

Q: Net sales for the year were $3,750,000 and cost of goods sold was $2,625,000 for the company's…

A: Step 1: Definition of Gross Profit and Gross Profit RatioGross Profit is the difference between net…

Q: A traveling production of Fame Broadway performs each year. The average show sells 1,500 tickets at…

A: Explanation of Revenue per Show:Revenue per show refers to the total income generated from ticket…

Q: Don't use ai given answer general accounting question

A: Step 1: Definition of Operating LeverageOperating Leverage is a financial metric that measures how…

Q: help

A: The problem provides the following financial information for Corry Inc:Return on Assets (ROA) =…

Q: No AI ANSWER

A: In conclusion, to attain a profit of $12,500, the enterprise must sell 5,313 units. This formula…

Q: Subject: Generation accounting

A: Step 1: Define Cost of Goods Manufactured (COGM)The cost of goods manufactured (COGM) represents the…

Q: No WRONG ANSWER

A: Calculate the Total Sales:Commission rate = 6.8% or 0.068 Commission earned = $2,520 Total sales =…

Q: Direct materials and labor?

A: Step 1: DefinitionsFactory Overhead (Manufacturing Overhead): This includes all indirect costs…

Q: Quick answer of this accounting questions

A: Step 1: Definition of Gross ProfitGross profit is the amount a business earns from sales after…

Q: General Accounting: Zmeta Glass Studio uses batch costing: Raw materials: Base cost $150/batch, each…

A: Step 1: DefinitionsBatch Costing: Batch costing is a cost accounting method where production costs…

Q: A bakery purchases $4,500 worth of flour for the month. However, only $4,200 worth of flour is…

A: Step 1: Definition of Cost of Unused CapacityThe cost of unused capacity refers to the portion of…

Q: Quick answer of this accounting questions

A: Step 1: Definition of Budget (Controllable) VarianceThe Budget (Controllable) Variance is the…

Q: Can you help me with accounting questions

A: Solution:The gross margin is calculated as:Gross Margin = Sales - Cost of Goods Sold (COGS)From the…

Q: When a company pays a bill, the account Cash will be __________.

A: When a company pays a bill, the account Cash will be credited.This is because cash is an asset, and…

Q: Can you please solve this accounting problem?

A: Step 1: Define Cost of Goods Sold (COGS)Cost of Goods Sold (COGS) refers to the direct costs…

Q: Parker Investments Co. purchased 30% of the common stock of Brightwood Inc. for $200,000. During the…

A: Step 1: Definition of Carrying Value under the Equity MethodThe carrying value of an investment…

Q: Please see an attachment for details general accounting question

A: Step 1: Define Activity RateThe Activity Rate in Activity-Based Costing (ABC) is calculated by…

Q: help me with this

A: Concept of Original BasisThe original basis of an asset refers to its initial purchase price or…

Q: What is the true answer? Financial accounting question

A: We'll use the Cash Flow from Assets (CFA) approach:CFA=OCF−Change in Net Working Capital−Net Capital…

Q: Given the solution and accounting question

A: Step 1: Definition of High-Low MethodThe high-low method is a way to estimate fixed and variable…

Q: Get correct solution this general accounting question

A: Step 1: Definition of Activity RateThe activity rate in activity-based costing is the cost assigned…

Question

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

Utica Machinery Company purchases an asset for 1,200,000. After the machine has been used for 25,000 hours, the company expects to sell the asset for 150,000. What is the depreciation rate per hour based on activity?
Montello Inc. purchases a delivery truck for $25,000. The truck has a salvage value of $6,000 and is expected to be driven for 125,000 miles. Montello uses the units-of-production depreciation method, and in year one the company expects the truck to be driven for 26,000 miles; in year two, 30,000 miles; and in year three, 40,000 miles. Consider how the purchase of the truck will impact Montellos depreciation expense each year and what the trucks book value will be each year after depreciation expense is recorded.
Montello Inc. purchases a delivery truck for $25,000. The truck has a salvage value of $6,000 and is expected to be driven for ten years. Montello uses the straight-line depreciation method. Calculate the annual depreciation expense.
Montello Inc. purchases a delivery truck for $15,000. The truck has a salvage value of $3,000 and is expected to be driven for eight years. Montello uses the straight-line depreciation method. Calculate the annual depreciation expense.
Referring to PA7 where Kenzie Company purchased a 3-D printer for $450,000, consider how the purchase of the printer impacts not only depreciation expense each year but also the assets book value. What amount will be recorded as depreciation expense each year, and what will the book value be at the end of each year after depreciation is recorded?
Montezuma Inc. purchases a delivery truck for $15,000. The truck has a salvage value of $3,000 and is expected to be driven for eight years. Montezuma uses the straight-line depreciation method. Calculate the annual depreciation expense. After three years of recording depreciation, Montezuma determines that the delivery truck will only be useful for another three years and that the salvage value will increase to $4,000. Determine the depreciation expense for the final three years of the assets life, and create the journal entry for year four.
Metlock, Inc. purchased a delivery truck for $30,000 on January 1, 2022. The truck has an expected salvage value of $3,000, and is expected to be driven 100,000 miles over its estimated useful life of 8 years. Actual miles driven were 15,400 in 2022 and 12,500 in 2023. Calculate depreciable cost per mile under units-of-activity method.
Splish Brothers Inc. purchased a delivery truck for $47,000 on January 1, 2022. The truck has an expected salvage value of $12,000, and is expected to be driven 100,000 miles over its estimated useful life of 10 years. Actual miles driven were 15,500 in 2022 and 14,700 in 2023. Calculate depreciable cost per mile under units-of-activity method.
Cheyenne Corp. purchased a delivery truck for $42,000 on January 1, 2022. The truck has an expected salvage value of $9,000, and is expected to be driven 100,000 miles over its estimated useful life of 8 years. Actual miles driven were 15,600 in 2022 and 10,000 in 2023. Calculate depreciable cost per mile under units-of-activity method.
On January 1, 2018, Wasson Company purchased a delivery vehicle costing $40,000. The vehicle has an estimated 3-year life and a $4,000 residual value. Wasson estimates that the vehicle will be driven 72,000 miles. What is the vehicle's depreciation expense for the year ended December 31, 2020 assuming Wasson uses the units-of-production depreciation method and the vehicle was driven 35,000 miles during 2018, 25,000 miles during 2019 and 14,000 miles in 2020? Group of answer choices A)$7,000 b)$12,000 C)$7,778 D)$6,667 e)None of the above
Whispering 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. (a1) Your answer is correct. Calculate depreciable cost per mile under units-of-activity method. (Round answer to 2 decimal places, e.g. 0.50.) Depreciable cost .29 per mile eTextbook and Media List of Accounts Attempts: unlimited %24
Montello Inc. purchases a delivery truck for $12,000. The truck has a salvage value of $2,000 and is expected to be driven for 100,000 miles. Montello uses the units-of-production depreciation method and in year one it expects to use the truck for 23,000 miles. Calculate the annual depreciation expens