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P8-4A. Accounting för tions related to its delivery truck: 5 Purchased for $14,300 cash a new truck with an estimated useful life of four years and Year 1 Jan. Feb. 20 Installed a new set of side-view mirrors at a cost of $68 cash. June Aug. 2 Paid a $250 repair bill for the uninsured portion of damages to the truck caused by a salvage value of $2,300. 9 Paid $285 for an engine tune-up, wheel balancing, and a periodic chassis lubrication Basin's own driver. Dec. 31 Recorded depreciation on the truck for the year. Year 2 1 Installed a set of parts bins in the truck at a cost of $800 cash. This expenditure was not expected to increase the salvage value of the truck. May Dec. 31 Recorded depreciation on the truck for the year. Year 3 Dec. 31 Recorded depreciation on the truck for the Basin's depreciation policies include (1) using straight-line depreciation, (2) recording depreci tion to the nearest whole month, and (3) expensing all truck expenditures of $75 of les. year. REQUIRED Raca

P8-4A. Accounting för tions related to its delivery truck: 5 Purchased for $14,300 cash a new truck with an estimated useful life of four years and Year 1 Jan. Feb. 20 Installed a new set of side-view mirrors at a cost of $68 cash. June Aug. 2 Paid a $250 repair bill for the uninsured portion of damages to the truck caused by a salvage value of $2,300. 9 Paid $285 for an engine tune-up, wheel balancing, and a periodic chassis lubrication Basin's own driver. Dec. 31 Recorded depreciation on the truck for the year. Year 2 1 Installed a set of parts bins in the truck at a cost of $800 cash. This expenditure was not expected to increase the salvage value of the truck. May Dec. 31 Recorded depreciation on the truck for the year. Year 3 Dec. 31 Recorded depreciation on the truck for the Basin's depreciation policies include (1) using straight-line depreciation, (2) recording depreci tion to the nearest whole month, and (3) expensing all truck expenditures of $75 of les. year. REQUIRED Raca

FINANCIAL ACCOUNTING
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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Basin's depreciation policies include (1) using straight-line depreciation, (2) recording deprecis b Double-declining C. Units-of-production. Assume annual 190,000. a. tions related to its delivery truck: Year 1 Jan. a salvage value of $2,300. Feb. 20 Installed a new set of side-view mirrors at a cost of $68 cash. 9 Paid $285 for an engine tune-up, wheel balancing, and a periodic chassis lubrication 2 Paid a $250 repair bill for the uninsured portion of damages to the truck caused by June Aug. Basin's own driver. Dec. 31 Recorded depreciation on the truck for the year. Year 2 1 Installed a set of parts bins in the truck at a cost of $800 cash. This expenditure was not expected to increase the salvage value of the truck. May Dec. 31 Recorded depreciation on the truck for the year. Year 3 Dec. 31 Recorded depreciation on the truck for the year. tion to the nearest whole month, and (3) expensing all truck expenditures of $75 or les. REQUIRED Based on these transactions:
Transcribed Image Text:Basin's depreciation policies include (1) using straight-line depreciation, (2) recording deprecis b Double-declining C. Units-of-production. Assume annual 190,000. a. tions related to its delivery truck: Year 1 Jan. a salvage value of $2,300. Feb. 20 Installed a new set of side-view mirrors at a cost of $68 cash. 9 Paid $285 for an engine tune-up, wheel balancing, and a periodic chassis lubrication 2 Paid a $250 repair bill for the uninsured portion of damages to the truck caused by June Aug. Basin's own driver. Dec. 31 Recorded depreciation on the truck for the year. Year 2 1 Installed a set of parts bins in the truck at a cost of $800 cash. This expenditure was not expected to increase the salvage value of the truck. May Dec. 31 Recorded depreciation on the truck for the year. Year 3 Dec. 31 Recorded depreciation on the truck for the year. tion to the nearest whole month, and (3) expensing all truck expenditures of $75 or les. REQUIRED Based on these transactions:
Calculate the depreciation expense for each of the three years. b. Calculate the book value of the delivery truck at the end of year 3. a.
Transcribed Image Text:Calculate the depreciation expense for each of the three years. b. Calculate the book value of the delivery truck at the end of year 3. a.
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