Problem 27-23 (AICPA Adapted)Patterson Company provided the following information onJanuary 1, 2020:Vehicle costUseful life in yearsUseful life in milesResidual value5,000,000100,0001,000,000Actual miles driven202030,00020,00015,000202120221. What is the depreciation for 2022 using the SYDmethod?1,000,0001,333,000800,000600,000a.b.с.d.2. What is the accumulated depreciation on December 31,2021 using the double declining balance method?а. 1,200,000b. 1,600,000c. 2,560,000d. 3,200,0003. What is the accumulated depreciation on December 31,2022 using the miles driven?а. 2,000,000b. 2,600,000800,000d. 600,000с.CS Scanned with CamScanner

Solution: Depreciation expense is recorded at the end of each year on fixed assets for there…

Patterson Company provided the following information on January 1, 2020: Vehicle cost Useful life in years Useful life in miles Residual value 5,000,000 100,000 1,000,000 Actual miles driven 2020 30,000 20,000 15,000 2021 2022 1. What is the depreciation for 2022 using the SYD method?

Patterson Company provided the following information on January 1, 2020: Vehicle cost Useful life in years Useful life in miles Residual value 5,000,000 100,000 1,000,000 Actual miles driven 2020 30,000 20,000 15,000 2021 2022 1. What is the depreciation for 2022 using the SYD method?

FINANCIAL ACCOUNTING

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Chapter1: Financial Statements And Business Decisions

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Question

Problem 27-23 (AICPA Adapted)
Patterson Company provided the following information on
January 1, 2020:
Vehicle cost
Useful life in years
Useful life in miles
Residual value
5,000,000
100,000
1,000,000
Actual miles driven
2020
30,000
20,000
15,000
2021
2022
1. What is the depreciation for 2022 using the SYD
method?
1,000,000
1,333,000
800,000
600,000
a.
b.
с.
d.
2. What is the accumulated depreciation on December 31,
2021 using the double declining balance method?
а. 1,200,000
b. 1,600,000
c. 2,560,000
d. 3,200,000
3. What is the accumulated depreciation on December 31,
2022 using the miles driven?
а. 2,000,000
b. 2,600,000
800,000
d. 600,000
с.
CS Scanned with CamScanner

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