General Accounting question On January 1, 20X1, ZipCo, which uses UOP depreciation, purchasesa truck for $24,000 with an estimated useful life of 100,000 milesand a residual value of $4,000. Miles driven are as follows:Year Miles20X1 20,00020X2 15,00020X3 10,00020X4 25,00020X5 30,000What is the depreciation rate?A. it depends on the number of miles driven.B. $0.24 per mile.C. $0.20 per mile.D. $0.28 per mile.

Step 1: Define Depreciation RateThe depreciation rate is the percentage an organization uses to…

Answered: On January 1, 20X1, ZipCo, which uses…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 8PA: Referring to PA7 where Kenzie Company purchased a 3-D printer for $450,000, consider how the...

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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 it expects to use the truck for 26,000 miles. Calculate the annual depreciation expense.
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.
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?
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Your company has purchased a large new truck-tractor for over-the-road use (asset class 00.26). It has a cost basis of $180,000. With additional options costing $15,000, the cost basis for depreciation purposes is $195,000. Its MV at the end of five years is estimated as $40,000. Assume it will be depreciated under the GDS: Solve, a. What is the cumulative depreciation through the endof year three? b. What is the MACRS depreciation in the fourth year? c. What is the BV at the end of year two?
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Can you show me this one? 15. XYZ Corp. purchased a forklift on January 1, 2018, for $12,000. The forklift is expected to last for five years and have a residual value of $1,200. XYZ uses the double-declining-balance method for depreciation. A. Calculate the depreciation expense, accumulated depreciation, and book value for each year of the forklift’s life. B. Analyze the impact of the entry to record depreciation expense for 2018.Assets = Liabilities +Stockholders’Equity Revenues – Expenses = Net IncomeYear Depreciation AccumulatedDepreciation Book Value
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