Speed, Inc., is a shipping company. On 1/1/20, the company purchases a new commercial sleeper truck for $740,000 cash. The expected residual value of thetruck is $70,000 and the expected useful life is 8 years. The company estimates that the truck will be used to drive 1,000,000 miles over its useful life (150,000miles in 2020; 110,000 miles in 2021 & all subsquent years).For the units-of-activity method, round the depreciaiton-per-unit to two decimal places before using it. YouPART A - STRAIGHT LINE DEPRECIATIONYear Ended 12/31/2020Income StatementDepreciation ExpenseYear Ended 12/31/2021Balance SheetAccumulated DepreciationAs of 12/31/2020As of 12/31/2021PART B - UNITS-OF-ACTIVITY DEPRECIATIONYear Ended 12/31/2020Income StatementDepreciation ExpenseYear Ended 12/31/2021Balance SheetAccumulated DepreciationAs of 12/31/2020As of 12/31/2021PART C - DOUBLE-DECLINING BALANCE DEPRECIATIONIncome StatementDepreciation ExpenseYear Ended 12/31/2020Year Ended 12/31/2021Balance SheetAccumulated DepreciationAs of 12/31/2020As of 12/31/2021---------

Introduction: Depreciation: Decreasing value of fixed assets over its useful life period called…

Speed, Inc., is a shipping company. On 1/1/20, the company purchases a new commercial sleeper truck for $740,000 cash. The expected residual value of the truck is $70,000 and the expected useful life is 8 years. The company estimates that the truck will be used to drive 1,000,000 miles over its useful life (150,000 miles in 2020; 110,000 miles in 2021 & all subsquent years). For the units-of-activity method, round the depreciaiton-per-unit to two decimal places before using it. You PART A - STRAIGHT LINE DEPRECIATION Income Statement Depreciation Expense Year Ended 12/31/2020 Year Ended 12/31/2021 Balance Sheet Accumulated Depreciation As of 12/31/2020 As of 12/31/2021 PART B - UNITS-OF-ACTIVITY DEPRECIATION Income Statement Depreciation Expense Year Ended 12/31/2020 Year Ended 12/31/2021 Balance Sheet Accumulated Depreciation As of 12/31/2020 As of 12/31/2021 PART C - DOUBLE-DECLINING BALANCE DEPRECIATION Income Statement Depreciation Expense Year Ended 12/31/2020 Year Ended 12/31/2021 Balance Sheet Accumulated Depreciation As of 12/31/2020 As of 12/31/2021

Speed, Inc., is a shipping company. On 1/1/20, the company purchases a new commercial sleeper truck for $740,000 cash. The expected residual value of the truck is $70,000 and the expected useful life is 8 years. The company estimates that the truck will be used to drive 1,000,000 miles over its useful life (150,000 miles in 2020; 110,000 miles in 2021 & all subsquent years). For the units-of-activity method, round the depreciaiton-per-unit to two decimal places before using it. You PART A - STRAIGHT LINE DEPRECIATION Income Statement Depreciation Expense Year Ended 12/31/2020 Year Ended 12/31/2021 Balance Sheet Accumulated Depreciation As of 12/31/2020 As of 12/31/2021 PART B - UNITS-OF-ACTIVITY DEPRECIATION Income Statement Depreciation Expense Year Ended 12/31/2020 Year Ended 12/31/2021 Balance Sheet Accumulated Depreciation As of 12/31/2020 As of 12/31/2021 PART C - DOUBLE-DECLINING BALANCE DEPRECIATION Income Statement Depreciation Expense Year Ended 12/31/2020 Year Ended 12/31/2021 Balance Sheet Accumulated Depreciation As of 12/31/2020 As of 12/31/2021

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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