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Required: Calculate depreciation expense using the activity-based method for 2024 and 2025, assuming a December 31 year-end. (Do not round your intermediate calculations.) Depreciation expense 2024 2025

Required: Calculate depreciation expense using the activity-based method for 2024 and 2025, assuming a December 31 year-end. (Do not round your intermediate calculations.) Depreciation expense 2024 2025

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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Urmila 

Exercise 7-15 (Static) Determine activity-based depreciation (LO7-4) Tasty Subs acquired a food service truck on October 1, 2024, for $120,000. The company estimates a residual value of $40,000 and a four-year service life. It expects to drive the truck 100,000 miles. Actual mileage was 5,000 miles in 2024 and 28,000 miles in 2025. Required: Calculate depreciation expense using the activity-based method for 2024 and 2025, assuming a December 31 year-end. (Do not round your intermediate calculations.) Depreciation expense 2024 2025
Transcribed Image Text:Exercise 7-15 (Static) Determine activity-based depreciation (LO7-4) Tasty Subs acquired a food service truck on October 1, 2024, for $120,000. The company estimates a residual value of $40,000 and a four-year service life. It expects to drive the truck 100,000 miles. Actual mileage was 5,000 miles in 2024 and 28,000 miles in 2025. Required: Calculate depreciation expense using the activity-based method for 2024 and 2025, assuming a December 31 year-end. (Do not round your intermediate calculations.) Depreciation expense 2024 2025
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Section 179 Deduction and Modified Accelerated Cost Recovery System (MACRS) Depreciation
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