Sexton Company acquired a truck for use in its business for $26,500 in a cash transaction. The truck is expected to be used over a five-year period, will be driven approximately 18,000 miles per year, and is expected to have a value at the end of the five years of $4,800. a. Compute the amount of depreciation that will be taken in the first two years of the truck's useful life if the actual miles driven are 16,000 and 18,200, respectively. b-1. What would be the accumulated depreciation at the end of the second year if the company had chosen the straight-line depreciation method? b-2. What would be the difference in accumulated depreciation between the units-of-production and straight-line methods at the end of the second year? Complete this question by entering your answers in the tabs below. Req A Req B1 Req B2 What would be the accumulated depreciation at the end of the second year if the company had chosen the straight-line depreciation method? Accumulated straight-line depreciation < Req A Req B2 > Req A Req B1 Req B2 Compute the amount of depreciation that will be taken in the first two years of the truck's useful life if the actual miles driven are 16,000 and 18,200, respectively. (Round the depreciation per mile to 2 decimal places.) Amount of Depreciation Year 1 Year 2
Sexton Company acquired a truck for use in its business for $26,500 in a cash transaction. The truck is expected to be used over a five-year period, will be driven approximately 18,000 miles per year, and is expected to have a value at the end of the five years of $4,800. a. Compute the amount of depreciation that will be taken in the first two years of the truck's useful life if the actual miles driven are 16,000 and 18,200, respectively. b-1. What would be the accumulated depreciation at the end of the second year if the company had chosen the straight-line depreciation method? b-2. What would be the difference in accumulated depreciation between the units-of-production and straight-line methods at the end of the second year? Complete this question by entering your answers in the tabs below. Req A Req B1 Req B2 What would be the accumulated depreciation at the end of the second year if the company had chosen the straight-line depreciation method? Accumulated straight-line depreciation < Req A Req B2 > Req A Req B1 Req B2 Compute the amount of depreciation that will be taken in the first two years of the truck's useful life if the actual miles driven are 16,000 and 18,200, respectively. (Round the depreciation per mile to 2 decimal places.) Amount of Depreciation Year 1 Year 2
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Sexton Company acquired a truck for use in its business for $26,500 in a cash transaction. The truck is expected to be used over a
five-year period, will be driven approximately 18,000 miles per year, and is expected to have a value at the end of the five years of
$4,800.
a. Compute the amount of depreciation that will be taken in the first two years of the truck's useful life if the actual miles driven are
16,000 and 18,200, respectively.
b-1. What would be the accumulated depreciation at the end of the second year if the company had chosen the straight-line
depreciation method?
b-2. What would be the difference in accumulated depreciation between the units-of-production and straight-line methods at the end
of the second year?
Sexton Company acquired a truck for use in its business for $26,500 in a cash transaction. The truck is expected to be used over a
five-year period, will be driven approximately 18,000 miles per year, and is expected to have a value at the end of the five years of
$4,800.
Complete this question by entering your answers in the tabs below.
a. Compute the amount of depreciation that will be taken in the first two years of the truck's useful life if the actual miles driven are
16,000 and 18,200, respectively.
b-1. What would be the accumulated depreciation at the end of the second year if the company had chosen the straight-line
depreciation method?
b-2. What would be the difference in accumulated depreciation between the units-of-production and straight-line methods at the end
of the second year?
Req A
Req B1
Req B2
What would be the accumulated depreciation at the end of the second year if the company had chosen the straight-line
depreciation method?
Complete this question by entering your answers in the tabs below.
Accumulated straight-line depreciation
Req A
Req B1
Req B2
Req A
Req B2 >
What would be the difference in accumulated depreciation between the units-of-production and straight-line methods at the
end of the second year?
Difference
< Req B1
Req B2
Req A
Req B1
Req B2
Compute the amount of depreciation that will be taken in the first two years of the truck's useful life if the actual miles driven
are 16,000 and 18,200, respectively. (Round the depreciation per mile to 2 decimal places.)
Amount of
Depreciation
Year 1
Year 2
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