Oriole uses the units-of-production method to calculate depreciation on its taxicabs. Each cab is expected to be driven 306,000 km over its life. Taxi 10 was purchased on March 1, 2020, for $31,140 and is expected to have a residual value of $540. Taxi 10 was driven 135,660 km in 2020 and 115,080 km in 2021. Oriole has a December 31 year end. Calculate the depreciation expense on Taxi 10 for 2020 and 2021. Year Depreciation expense 2020 2$ 2021 %24

Oriole uses the units-of-production method to calculate depreciation on its taxicabs. Each cab is expected to be driven 306,000 km over its life. Taxi 10 was purchased on March 1, 2020, for $31,140 and is expected to have a residual value of $540. Taxi 10 was driven 135,660 km in 2020 and 115,080 km in 2021. Oriole has a December 31 year end. Calculate the depreciation expense on Taxi 10 for 2020 and 2021. Year Depreciation expense 2020 2$ 2021 %24

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

On January 1, 2024, the Excel Delivery Company purchased a delivery van for $33,000. At the end of its five-year service life, it is estimated that the van will be worth $3,000. During the five-year period, the company expects to drive the van 100,000 miles. Required: Calculate annual depreciation for the five-year life of the van using each of the following methods. 3. Units of production using miles driven as a measure of output, and the following actual mileage: Note: Do not round intermediate calculations. Year miles depreciation 2024 22000 6600 2025 24000 7200 2026 15000 4500 2027 20000 6000 2028 21000 _____ and it is not 6300
Mountain View Resorts purchased equipment at the beginning of 2021 for $40,000. Residual value at the end of an estimated four- year service life is expected to be $8,200. The machine operated for 1,900 hours in the first year and the company expects the machine to operate for a total of 11,000 hours over its four-year life. Calculate depreciation expense for 2021, using each of the following depreciation methods: (1) straight-line, (2) double-declining- balance, and (3) activity-based. (Round your intermediate calculations to 2 decimal places.) Depreciation Expense Straight-line Double-declining-balance Activity-based
On Jan. 1, 2021, Mother, Inc., whose financial year end is every Dec. 31, purchased a unit of equipment at a total cost of P10,000,000. The equipment is estimated to have a useful life of 5 years with a residual value equal to 10% of its cost. - How much is the depreciation expense for 2021 using the straight line depreciation method? - How much is the depreciation expense for 2024 using the SYD depreciation method? - How much is the depreciation expense for 2025 using the double declining balance depreciation method?
Visahno
On January 1, 2024, Hobart Manufacturing Company purchased a drill press at a cost of $36,000. The drill press is expected to last 10 years and has a residual value of $6,000. During its 10-year life, the equipment is expected to produce 500,000 units of product. In 2024 and 2025, 25,000 and 84,000 units, respectively, were produced. Required: Compute depreciation for 2024 and 2025 and the book value of the drill press on December 31, 2024 and December 31, 2025, assuming the double-declining-balance method is used. Depreciation Book Value 2024 2025
On July 1, 2020 Waterway's Greenhouse purchased a new delivery truck for $100,000. Waterway estimates that the delivery truck will have a five-year useful life, or 225,000 kilometres, and a residual value of $10,000. Waterway's Greenhouse has a December 31 year end. Waterway drove the truck 14,000 km in 2020 and 38,000 km in 2021. Calculate depreciation expense using the straight-line method for 2020 and 2021. 2020 2021 Depreciation Expense eTextbook and Media Calculate depreciation expense using the double-diminishing-balance method for 2020 and 2021. 2020 2021 Depreciation Expense %24 eTextbook and Media Calculate depreciation expense using the units-of-production method for 2020 and 2021. (Round depreciable amount per unit to 2 decimal places, eg. 5.27 and the final answers to O decimal places, eg. 5,275.) 2020 2021 Depreciation Expense %24 %24
bhavesh
On January 1, 2017, Northeast Transportation Company purchased a used aircraft at a cost of $58,900,000. Northeast expects the plane to remain useful for five years (7,200,000 miles) and to have a residual value of $4,900,000. Northeast expects to fly the plane 750,000 miles the first year, 1,375,000 miles each year during the second, third, and fourth years, and 2,325,000 miles the last year. Read the requirements. 1. Compute Northeast's depreciation for the first two years on the plane using the straight-line method, the units-of-production method, and the double-declining balance method. a. Straight-line method Using the straight-line method, depreciation is $ for 2017 and $ for 2018.
Mwakisha, a contractor, started business on 1 January 2018. Purchases and disposals of machines over the subsequent three years were as follows: Machine Date of Cost Date of Purchase Disposal Shs. MA 1 1 January 2018 5,000,000 MB 2 1 July 2019 2,500,000 1 June 2020 MC 3 1 October 2020 7,000,000 The machines are depreciated on straight line basis using a rate of 20 per cent per annum. Required: For the years 2018, 2019 and 2020, calculate the depreciation…
Gwynedd Industries uses straight-line depreciation on all of its depreciable assets. The company records annual depreciation expense at the end of each calendar year. On January 1, 2020, the company purchased a machine costing $170,000, and it has an estimated useful life of 15 years and an estimated residual value of $26,000. Depreciation for partial years is rounded to the nearest full month. In 2024, management decided to revise its estimated life from 18 years to 25 years. No change was made in the estimated residual value. The revised estimate of the useful life was decided prior to recording annual depreciation expense for the year ended December 31, 2024. Instructions: a) Prepare journal entries in chronological order for the given events, beginning with the purchase of machinery on January 1, 2020. Record depreciation expense separately for each year 2020 through 2024 (5 separate entries for each year's depreciation) (Hint: record the purchase and annual depreciation for each…
Dexter Delivery Services has a December 31, 2014 year end. On January 1, 2014, Dexter has a delivery van with a cost of $35,000 and accumulated depreciation of $12,000. The van was expected to have a residual value of $5,000 and a useful life of 5 years. Dexter uses straight-line depreciation. Dexter plans to replace its delivery van on April 1, 2014 and is considering two alternatives. The Van has a fair Value of $22000. 1. Dexter has been offered $14,000 for the old van. If Dexter accepts this offer, Dexter will then purchase a replacement for $50,000 cash. 2. Trade the old van for a new one. The dealer will allow a $22,000 trade-in allowance which is fair value on the old van, and Dexter will have to pay additional cash of $28,000. Instructions a. Record the required depreciation adjustment on the old van to April 1, 2014. b. Record the disposal of the van under each of the two alternatives. C. Which alternative do you recommend and why?
Burger Chef acquired a delivery truck on March 1, 2024, for $35,400. The company estimates a residual value of $1,400 and a five- year service life. It expects to drive the truck 85,000 miles. Actual mileage was 13,900 miles in 2024 and 13,200 miles in 2025. Calculate depreciation expense using the activity-based method for 2024 and 2025, assuming a December 31 year-end. (Do not round intermediate calculations.) Year 2024 2025 Depreciation Expense