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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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Tasty Subs acquired a delivery truck on October 1, 2021, for $25,800. The company estimates a residual value of $2,400 and a six-
year service life.
Required:
Calculate depreciation expense using the straight-line method for 2021 and 2022, assuming a December 31 year-end.
2021
2022
Depreciation expense

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On Jan 1, 2019, Tuesday company purchased a delivery vehicle costing $40,000. The vehicle has an estimated 9 year life and $4,000 residual value. What is vehicle's accumulated depreciation as of December 31, 2020? Assuming they use straight line depreciation method. Do not put any decimal places.
Depreciation Methods Sayers Company purchased a building for $250,000 on January 2, 2019. The building has an expected residual value of $20,000 at the end of its expected life of 20 years. Required: 1 a. Prepare a schedule showing depreciation expense for 2019 and 2020 and the book value on December 31, 2019, and December 31, 2020, for straight-line method. If required, round your answers to the nearest dollar. SAYERS COMPANY Depreciation Schedule Straight-line Beginning Book Value Depreciation Ending Book Value 2019 $ $11500 $ 2020 $ $ $ b. Prepare a schedule showing depreciation expense for 2019 and 2020 and the book value on December 31, 2019, and December 31, 2020, for sum-of-the-years'-digits method. If required, round your answers to the nearest dollar. SAYERS COMPANY Depreciation Schedule Sum-of-the-years'-digits method Beginning Book Value Depreciation Ending Book Value 2019 $ $ $ 2020 $ $ $ c. Prepare a schedule…
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