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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![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
Year Ended 12/31/2020
Income Statement
Depreciation Expense
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
Year Ended 12/31/2020
Income Statement
Depreciation Expense
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
---------](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd210f98b-1208-4eea-a54e-043fbbd49724%2F40d9ef1f-fd6f-45de-9429-692a7228fbbb%2F1v8hsyc_processed.png&w=3840&q=75)
Transcribed Image Text: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
Year Ended 12/31/2020
Income Statement
Depreciation Expense
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
Year Ended 12/31/2020
Income Statement
Depreciation Expense
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
---------
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