On January 1, 2024, Nimble Delivery Service purchased a truck at a cost of $65.000 Before placing the truck in service, Nimble spent $4,000 painting it $800 replacing lines, and $9,700 overha the engine. The truck should remain in service for five years and have a residual value of $6.000. The truck's annual mileage is expected to be 23,000 miles in each of the first four years and 13, miles in the fifth year-105,000 miles in total. In deciding which depreciation method to use, Harvey Wamer, 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-ine method Straight-Line Depreciation Schedule Date 1-1-2024 12-31-2024 12-31-2025 12-01-2020 12-31-2027 12-31-2028 Asset Cost Depreciable Cost Depreciation for the Year Useful Life . Book Depreciation Accumulated Expense Depreciation Value

On January 1, 2024, Nimble Delivery Service purchased a truck at a cost of $65.000 Before placing the truck in service, Nimble spent $4,000 painting it $800 replacing lines, and $9,700 overha the engine. The truck should remain in service for five years and have a residual value of $6.000. The truck's annual mileage is expected to be 23,000 miles in each of the first four years and 13, miles in the fifth year-105,000 miles in total. In deciding which depreciation method to use, Harvey Wamer, 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-ine method Straight-Line Depreciation Schedule Date 1-1-2024 12-31-2024 12-31-2025 12-01-2020 12-31-2027 12-31-2028 Asset Cost Depreciable Cost Depreciation for the Year Useful Life . Book Depreciation Accumulated Expense Depreciation Value

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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