On October 1, 2024, Marigold Auto Rentals purchases a new automobile for $29,700 to add to its fleet of rental cars. The automobiles are rented out on a short-term basis with rental fees calculated based on distance driven by the customer. Marigold's policy is to sell and replace a car after the earlier of three years, or 80,000 kilometres. The average selling price of the used cars is $8,900. This particular car was driven 8,900 km in 2024, 38,600 km in 2025, and 19,100 km in 2026. Calculate 2024 and 2025 depreciation expense under each of the following methods: (Round answers to 0 decimal places, e.g. 5,275.) Straight-line depreciation Diminishing-balance depreciation using a 40% rate Units-of-production depreciation $ 2024 2025

On October 1, 2024, Marigold Auto Rentals purchases a new automobile for $29,700 to add to its fleet of rental cars. The automobiles are rented out on a short-term basis with rental fees calculated based on distance driven by the customer. Marigold's policy is to sell and replace a car after the earlier of three years, or 80,000 kilometres. The average selling price of the used cars is $8,900. This particular car was driven 8,900 km in 2024, 38,600 km in 2025, and 19,100 km in 2026. Calculate 2024 and 2025 depreciation expense under each of the following methods: (Round answers to 0 decimal places, e.g. 5,275.) Straight-line depreciation Diminishing-balance depreciation using a 40% rate Units-of-production depreciation $ 2024 2025

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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