Whippet Bus Lines uses the units-of- activity method in depreciating its buses. One bus was purchased on January 1, 2017, at a cost of $128,000. Over its 4-year useful life, the bus is expected to be driven 213,750 miles. The salvage value is expected to be $8,300. Compute the depreciation cost per unit.
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- Montello Inc. purchases a delivery truck for $25,000. The truck has a salvage value of $6,000 and is expected to be driven for 125,000 miles. Montello uses the units-of-production depreciation method, and in year one it expects to use the truck for 26,000 miles. Calculate the annual depreciation expense.Monty Bus Lines uses the units-of-activity method in depreciating its buses. One bus was purchased on January 1, 2022, at a cost of $233,839. Over its 5-year useful life, the bus is expected to be driven 139,900 miles. Salvage value is expected to be $8,600. (a) Compute the depreciable cost per unit. (Round answer to 2 decimal places, eg 0.50.) Depreciation cost per unit per mile eTextbook and Media Save for Later (b) Prepare a depreciation schedule assuming actual mileage was: 2022, 34,900: 2023, 28,000; 2024, 40,000; and 2025, 37,000. (Round cost per unit to 2 decimal places, eg 15.25 and all other answers to O decimal places, eg. 5,275.) Computation Annual Depreciation Expense Units of Depreciation Accumulated Year Activity Cost /Unit Depreciation 2022 2023 2024 2025Manji
- Metlock, Inc. purchased a delivery truck for $30,000 on January 1, 2022. The truck has an expected salvage value of $3,000, and is expected to be driven 100,000 miles over its estimated useful life of 8 years. Actual miles driven were 15,400 in 2022 and 12,500 in 2023. Calculate depreciable cost per mile under units-of-activity method.Splish Brothers Inc. purchased a delivery truck for $47,000 on January 1, 2022. The truck has an expected salvage value of $12,000, and is expected to be driven 100,000 miles over its estimated useful life of 10 years. Actual miles driven were 15,500 in 2022 and 14,700 in 2023. Calculate depreciable cost per mile under units-of-activity method.Yello Bus Lines uses the units-of-activity method in depreciating its buses. One bus was purchased on January 1, 2020, at a cost of $299,818. Over its 4-year useful life, the bus is expected to be driven 190,600 miles. Salvage value is expected to be $8,200. (a) X Your answer is incorrect. Compute the depreciable cost per unit. (Round answer to 2 decimal places, e.g. 0.50.) Depreciation cost per unit LA $ 1.40 per mile
- Fabian WoodworksThis company purchased a truck at a cost of $12,000. The truck has an estimated residual value of $2,000 and an estimated life of 5 years, or 100,000 hours of operation. The truck was purchased on January 1, 2012, and was used 27,000 hours in 2012 and 26,000 hours in 2013.Refer to Fabian Woodworks. If the company uses the units-of-production method, what is the depreciation rate per hour for the equipment? a. $1.00 b. $1.10 c. $0.10 d. $0.12On January 1, 2016, Wasson Company purchased a delivery truck costing $40,000. The truck has an estimated 6-year life and a $4,000 residual value. Wason uses the units-of-production depreciation method and Wasson estimates that the truck will be driven 100,000 miles over its life. What is the truck's book value as of December 31, 2017 assuming the vehicle was driven 10,000 miles during 2016 and 18,000 miles during 2017$Cheyenne Corp. purchased a delivery truck for $42,000 on January 1, 2022. The truck has an expected salvage value of $9,000, and is expected to be driven 100,000 miles over its estimated useful life of 8 years. Actual miles driven were 15,600 in 2022 and 10,000 in 2023. Calculate depreciable cost per mile under units-of-activity method.
- Sandhill Company bought machinery on January 1, 2009, at a cost of $90,000. The machinery had an estimated life of 8 years and salvage value of $15,680. On January 1, 2014, Sandhill estimates that the machinery will have a life of only 2 more years from January 1, 2014, and the salvage value is now estimated to be $3,920. Sandhill uses straight-line depreciation. Compute the annual depreciation expense for 2014. Annual depreciation expense for 2014 $Samson Manufacturing Company, a calendar year company, purchased a machine for $65,000 on January 1, 2015. At the date of purchase, Samson incurred the following additional costs: Loss on sale of old machinery $ 1,000 Freight-in 500 Installation cost 2,000 Testing costs prior to regular operation 300 The machine’s estimated salvage value was $5,000, and Samson estimated it would have a useful life of 20 years with depreciation being computed on the straight-line method. In January 2017, accessories costing $3,600 were added to the machine to reduce its operating costs. These accessories neither prolonged the machine’s life nor provided any additional salvage value.Promise Trucking Corporation uses the units-of-production depreciation method because units-of-production best measures wear and tear on the trucks. Consider these facts about one Mack truck in the company's fleet. data facts: When acquired in 2015, the rig cost $370,000and was expected to remain in service for 10 years or 1,000,000 miles. Estimated residual value was $140,000. The truck was driven 85,000 miles in 2015, 125,000miles in 2016, and 165,000 miles in 2017.After 40,000 miles, on March 15, 2018, the company traded in the Mack truck for a less expensive Freightliner. Promise also paid cash of $28,000.Fair market value of the Mack truck was equal to its net book value on the date of the trade. Requirements: 1. Record the journal entry for depreciation expense in 2018. 2. Determine Promise's cost of the new truck. 3. Record the journal entry for the exchange of assets on MarchMarch 15, 2018. Assume the exchange had commercial substance.