What is the depreciation expense for the truck? On January 1, Zane Motors, which uses Units-of-Production(UOP) depreciation, purchased a truck for $30,000 with anestimated useful life of 120,000 miles and a residual valueof $5,000. The miles driven each year are as follows:Year Miles Driven20X1 22,00020X2 18,00020X3 14,00020X4 30,00020X5 36,000What is the depreciation expense for the truck in 20X1?

Explanation of Units-of-Production (UOP) Method:The Units-of-Production method is a depreciation…

Answered: On January 1, Zane Motors, which uses…

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

Similar questions

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.
Akron Incorporated purchased an asset at the beginning of Year 1 for 375,000. The estimated residual value is 15,000. Akron estimates that the asset has a service life of 5 years. Calculate the depreciation expense using the sum-of-the-years-digits method for Years 1 and 2 of the assets life.
Grandorf Company replaced the engine in a truck for 8,000 and expects the new engine will extend the life of the truck two years beyond the original estimated life. Related information is provided below. Cost of truck 65,000 Salvage value 5,000 Original estimated life 6 years The truck was purchased on January 1, 20-1. The engine was replaced on January 1, 20-6. Using straight-line depreciation, compute depreciation expense for 20-6.
Can you please answer the accounting question?
Chaos company purchased a new truck at the beginning of the year for $60,000. The truck has a useful life of 8 years or 150,000 miles, and an estimated salvage value of $10,000. If the truck is driven 25,000 miles this year, how much depreciation will Chaos report under the double declining balance (DDB) method and the units-of-production (UOP) method? DDB: $12.500; UOP: $10,000 DDB: $15.000; UOP: $10,714 DDB: $15,000; UOP: $10,000
The depreciation expense for the truth is 20X1
Big M's BBQ purchased a truck for $51,000 on 1/1 in Year 1. The truck is expected to have a five-year life or last 100,000 miles and have a residual value of $10,000. The truck was driven as follows for year 1 & 2: Year 1 29,000 miles • Year 2 11,000 miles If the activity based depreciation method is used, what will be the book value of the truck at the end of Year 2 on 12/31? Fill in the blank with your calculated number. DO NOT include commas, $ signs, period, decimal points, etc., just enter the raw number. Webcourses will add commas to your answer automatically. For example, if you calculated the answer to be $24,123, you would only input: 24123 ASUS f4 f5 f6 f7 f8 f9 f10 f11 图

Finx, Inc., purchased a truck for $35,000. The truck is expected to be driven 15,000 miles per yearover a five-year period and then sold for approximately $5,000. Determine depreciation for thefirst year of the truck’s useful life by the straight-line and units-of-output methods if the truck isactually driven 16,000 miles.
On January 1 of the current year (Year 1), CVX acquired a delivery van for $68,000. The estimated useful life of the van is 6 years or 120,000 miles. The residual value at the end of 6 years is estimated to be $8,000. The actual mileage for the van was 19,000 miles in Year 1 and 25,000 miles in Year 2. What is the depreciation expense for the second year of use (Year 2) if CVX uses the units of production method? Provide answer
On July 1, 2013, Farm Fresh Industries purchased a specialized delivery truck for $126,000. At the time, FarmFresh estimated the truck to have a useful life of eight years and a residual value of $30,000. On March 1, 2018,the truck was sold for $58,000. Farm Fresh uses the straight-line depreciation method for all of its plant and equipment. Partial-year depreciation is calculated based on the number of months the asset is in service.Required:1. Prepare the journal entry to update depreciation in 2018.2. Prepare the journal entry to record the sale of the truck.3. Assuming that the truck was sold for $80,000, prepare the journal entry to record the sale.
At the beginning of last year, Barrington Corporation purchased a piece of heavy equipment for $47,000. The equipment has a life of five years or 100,000 hours. The estimated residual value is $7,000. Bremond used the equipment for 24,000 hours last year and 31,000 hours this year. Depreciation expense for year two using double-declining-balance (DDB) and units-of-production (UOP) methods would be as follows: (Carry all rates to two decimal places, XX) DDB UOP OA. $9,600 $12,400 B. $9,600 $14,570 OC. $11,280 $12,400 OD. $11,280 $14,570
On July 1, 2016, Farm Fresh Industries purchased a specialized delivery truck for $225,000. At the time, Farm Fresh estimated the truck to have a useful life of eight years and a residual value of $33,000. On March 1, 2021, the truck was sold for $95,000. Farm Fresh uses the straight-line depreciation method for all of its plant and equipment. Partial-year depreciation is calculated based on the number of months the asset is in service. Required:1. Prepare the journal entry to update depreciation in 2021.2. Prepare the journal entry to record the sale of the truck.3. Assuming that the truck was instead sold for $123,000, prepare the journal entry to record the sale.

SEE MORE QUESTIONS

Recommended textbooks for you

Principles of Accounting Volume 1

Accounting

ISBN:

9781947172685

Author:

OpenStax

Publisher:

OpenStax College

Intermediate Accounting: Reporting And Analysis

Accounting

ISBN:

9781337788281

Author:

James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:

Cengage Learning

College Accounting, Chapters 1-27

Accounting

ISBN:

9781337794756

Author:

HEINTZ, James A.

Publisher:

Cengage Learning,

Principles of Accounting Volume 1

Accounting

ISBN:

9781947172685

Author:

OpenStax

Publisher:

OpenStax College

Intermediate Accounting: Reporting And Analysis

Accounting

ISBN:

9781337788281

Author:

James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:

Cengage Learning

College Accounting, Chapters 1-27

Accounting

ISBN:

9781337794756

Author:

HEINTZ, James A.

Publisher:

Cengage Learning,

SEE MORE TEXTBOOKS