Please I need this question answer Accounting The Rockmart Construction Company delivers dirt and stone from localquarries to its construction sites. A new truck that was purchased for a cost of$118,000 at the beginning of the year was expected to deliver 118,000 tonsover Its useful life.The following Is a breakdown of the tons delivered during the year to eachconstruction site:Construction Sites A BCDTons Delivered1,800 3,300 3,800 1,300How much truck depreciation should be allocated to Site D?a. $15,039b. $1,300c. $1,180d. None of the above answers are correct.

Step 1:Define Overhead AllocationOverhead costs cannot be traced to the units produced physically…

Answered: The Rockmart Construction Company…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 4EA: Montello Inc. purchases a delivery truck for $15,000. The truck has a salvage value of $3,000 and is...

See similar textbooks

Similar questions

Your company has purchased a large new trucktractor for over-the-road use (asset class 00.26). It has a cost basis of $173,000. With additional options costing $14,000, the cost basis for depreciation purposes is $187,000. Its MV at the end of four years is estimated as $42,000. Assume it will be depreciated under the GDS: a. What is the cumulative depreciation through the end of year two? b. What is the MACRS depreciation in the third year? c. What is the BV at the end of year one?
A construction company is considering changing its depreciation from the MACRS method to the historical SL method for a general purpose hauling truck. The cost basis of the truck is $100,000, and the expected salvage value for depreciation purposes is $8,000. The company will use the truck for eight years and will depreciate it over this period of time with the SL method.What is the difference in the amount of depreciation that would be claimed in year five (i.e., MACRS versus SL)?
Your company has purchased a large new trucktractor for over-the-road use (asset class 00.26). It has a cost basis of $179,000. With additional options costing $14,000, the cost basis for depreciation purposes is $193,000. Its MV at the end of six years is estimated as $36,000. Assume it will be depreciated under the GDS: a. What is the cumulative depreciation through the end of year two? b. What is the MACRS depreciation in the second year? c. What is the BV at the end of year one? Click the icon to view the partial listing of depreciable assets used in business. Click the icon to view the GDS Recovery Rates (rk). a. The cumulative depreciation through the end of year two is $ (Round to the nearest dollar.) b. The MACRS depreciation in the second year is $ (Round to the nearest dollar.) c. The BV at the end of year one is $ (Round to the nearest dollar.)
An assembly line conveyor system with a 5-year life is to be depreciated by the DDB method. The conveyor units had a first cost of $30,000 with a$9000 salvage value. The annual operating cost allocated to the conveyor is $7000 per year. The book value at the end of year 2 is closest to:a. $6,480b. $10,800c. $12,400d. $18,000
Given the following cost information about a fixed asset, calculate depreciation expense for its second year of operation assuming a) straight-line depreciation, b) double-declining balance, and c) units of production. The cost of a truck purchased on January 1 is $30,000. It has a useful life of 5 years or 75,000 miles. At the time of the purchase of the asset, it had an estimated salvage value of $3,000 at the end of its useful life. It is driven 7,500 miles in its first year of operation and 16,750 miles in its second year of operation. Show the presentation of the fixed assets section of the balance sheet at the end of the second year for each of the above situations (i.e., straight-line depreciation, double-declining balance, and units of production). How much is the book value of this asset at the end of that second year under each of those depreciation methods? Solution: Asset book value Straight line Double-declining balance Units of production…
Given the following cost information about a fixed asset, calculate depreciation expense for its second year of operation assuming a) straight-line depreciation, b) double-declining balance, and c) units of production. The cost of a truck purchased on January 1 is $30,000. It has a useful life of 5 years or 75,000 miles. At the time of the purchase of the asset, it had an estimated salvage value of $3,000 at the end of its useful life. It is driven 7,500 miles in its first year of operation and 16,750 miles in its second year of operation.. Show the presentation of the fixed assets section of the balance sheet at the end of the second year for each of the above situations (i.e., straight-line depreciation, double-declining balance, and units of production). How much is the book value of this asset at the end of that second year under each of those depreciation methods? Edit View Incert Format Tools Table
build a modelA purchased machine cost $320,000, with delivery and installation charges amounting to $30,000. The declared salvage value was $50,000. Its useful life is 10 years. a) Compute the SL depreciation schedule over its useful life. b) Compute the DDB depreciation schedule over its useful life. c) Compute the MACRS depreciation schedule. Its ADR life is 12 years. d) Early in Year 4, the company changed its product mix and found that it no longer needed the machine. One of its competitors agreed to buy the machine for $110,000. Determine the loss, gain, or recapture on the sale. Use the MACRS schedule
A machine with a cost of $750,000 has an estimated salvage value of $100,000) and an estimated useful life of 5 years or 30,000 hours. It is to be depreciated using the units-of-activity method of depreciation. The machine was used for 7,000 hours in the first year and 9,000 hours in the second year. Calculate the depreciation expense for the second year using the units of activity method. (Please round answer to the nearest dollar, i.e. 3,078.666 would be entered as 3,079)
Copy equipment was acquired at the beginning of the year at a cost of $25,200 that has an estimated residual value of $2,300 and an estimated useful life of 5 years. It is estimated that the machine will output an estimated 1,145,000 copies. This year, 246,000 copies were made. a. Determine the depreciable cost. b. Determine the depreciation rate. Round your answer to two decimal places. per copy c. Determine the units-of-activity depreciation for the year. LA ?
Ingot Land Company owns four trucks dedicated primarily to its landfill business. The company's accounting record indicates the following: Determine the amount of depreciation for each truck during the year.
Replace or Keep Equipment? The old factory equipment was purchased four years ago for $925,000. Over the last four years, your company has allocated depreciation based on the straight-line method. The expected salvage value is $35,000. The current book value of the factory equipment is $620,000. The operating expenses total approximately $40,000 a year. It is estimated that the residual value (market value) of the old machine is $355,000. The CFO is contemplating whether to replace the piece of factory equipment. The replacement factory equipment would have a purchase price of $520,000, a useful life of eight years, a salvage value of 45,000, and annual operating costs of $35,000.
Copy equipment was acquired at the beginning of the year at a cost of $38,660 that has an estimated residual value of $3,500 and an estimated useful life of 5 years. It is estimated that the machine will output an estimated 1,172,000 copies. This year, 270,000 copies were made. a. Determine the depreciable cost. b. Determine the depreciation rate. Round your answer to two decimal places. per copy c. Determine the units-of-output depreciation for the year. Previous Next

SEE MORE QUESTIONS

Recommended textbooks for you

Principles of Accounting Volume 1

Accounting

ISBN:

9781947172685

Author:

OpenStax

Publisher:

OpenStax College

College Accounting, Chapters 1-27

Accounting

ISBN:

9781337794756

Author:

HEINTZ, James A.

Publisher:

Cengage Learning,

EBK CONTEMPORARY FINANCIAL MANAGEMENT

Finance

ISBN:

9781337514835

Author:

MOYER

Publisher:

CENGAGE LEARNING - CONSIGNMENT

Principles of Accounting Volume 1

Accounting

ISBN:

9781947172685

Author:

OpenStax

Publisher:

OpenStax College

College Accounting, Chapters 1-27

Accounting

ISBN:

9781337794756

Author:

HEINTZ, James A.

Publisher:

Cengage Learning,

EBK CONTEMPORARY FINANCIAL MANAGEMENT

Finance

ISBN:

9781337514835

Author:

MOYER

Publisher:

CENGAGE LEARNING - CONSIGNMENT

Excel Applications for Accounting Principles

Accounting

ISBN:

9781111581565

Author:

Gaylord N. Smith

Publisher:

Cengage Learning

Intermediate Accounting: Reporting And Analysis

Accounting

ISBN:

9781337788281

Author:

James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:

Cengage Learning

Century 21 Accounting General Journal

Accounting

ISBN:

9781337680059

Author:

Gilbertson

Publisher:

Cengage

SEE MORE TEXTBOOKS