Tasty Subs acquired a delivery truck on October 1, 2021, for $26,500. The company estimates a residual value of $3,500 and a six-year service life. It expects to drive the truck 100,000 miles. Actual mileage was 6,000 miles in 2021 and 21,000 miles in 2022.**Required:**Calculate depreciation expense using the activity-based method for 2021 and 2022, assuming a December 31 year-end. *(Do not round your intermediate calculations.)*| | 2021 | 2022 ||------------------|------|------|| Depreciation expense | | |**Diagram Explanation:**This diagram consists of a two-column table labeled with the years 2021 and 2022. Underneath, it provides space to calculate and enter the depreciation expense for each year. The activity-based method of depreciation is used, requiring the actual mileage data to determine the expense.

Depreciable cost=Total Cost-Residual value=$26,500-$3,500=$23,000

Answered: Tasty Subs acquired a delivery truck on…

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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