Horngren's Financial & Managerial Accounting (5th Edition)
5th Edition
ISBN: 9780133866292
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
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Chapter 9, Problem 9.29E
Measuring asset cost, units-of-production
Pact Trucking Corporation uses the
When acquired in 2013, the rig cost $450,000 and was expected to remain in service for 10 years or 1,000,000 miles. Estimated residual value was $120,000. The truck was driven 82,000 miles in 2013, 122,000 miles in 2014, and 162,000 miles in 2015. After 39,000 miles, on March 15, 2016, the company traded in the Mack truck for a less expensive Freightliner. Pact also paid cash of $27,000. Fair market value of the Mack truck was equal to its net book value on me date of the trade.
Requirements
1. Record the
2. Determine Pact's Cost of me new truck.
3. Record the journal entry for the exchange of assets on March 15, 2016. Assume the exchange had commercial substance.
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Measuring asset cost, units-of-production depreciation, and asset trade
Wimot 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.
When acquired in 2015, the rig cost $360,000 and was expected to remain in service for 10 years or 1,000,000 miles. The estimated residual value was $90,000. The truck was driven 80,000 miles in 2015,120,000 miles in 2016, and 160,000 miles in 2017. After 44,000 miles, on March 15, 2018, the company traded in the Mack truck for a less expensive Freightliner. Wimot also paid cash of $20,000. The fair market value of the Mack truck was equal to its net book value on the date of the trade.
Requirements
Record the journal entry for depreciation expense in 2018.
Determine Wimot’s cost of the new truck.
Record the journal entry for the exchange of assets on March 15, 2018. Assume the exchange had commercial…
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.
Pact 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
More info
When acquired in 2021, the rig cost $370,000 and was expected to remain in
service for 10 years or 1,000,000 miles. Estimated residual value was $150,000.
The truck was driven 82,000 miles in 2021, 122,000 miles in 2022, and 162,000
miles in 2023. After 41,000 miles, on March 15, 2024, the company traded in the
Mack truck for a less expensive Freightliner. Pact also paid cash of $26,000. Fair
market value of the Mack truck was equal to its net book value on the date of the
trade.
Requirements
1.
2.
3.
D
Record the journal entry for depreciation expense in 2024.
Determine Pact's cost of the new truck.
Record the journal entry for the exchange of assets on March 15, 2024. Assume the
exchange had commercial substance.
- X
Chapter 9 Solutions
Horngren's Financial & Managerial Accounting (5th Edition)
Ch. 9 - Prob. 1QCCh. 9 - Prob. 2QCCh. 9 - Which method almost always produces the most...Ch. 9 - A Celty Airline jet costs 28,000,000 and is...Ch. 9 - A copy machine costs 45,000 when new and has...Ch. 9 - Suppose Print and Photo Center in the preceding...Ch. 9 - Prob. 7QCCh. 9 - Prob. 8QCCh. 9 - Liberty Corporation reported beginning and ending...Ch. 9 - A truck costs 50,000 when new and has accumulated...
Ch. 9 - Prob. 1RQCh. 9 - Prob. 2RQCh. 9 - Prob. 3RQCh. 9 - Prob. 4RQCh. 9 - Prob. 5RQCh. 9 - What is the difference between a capital...Ch. 9 - Prob. 7RQCh. 9 - Prob. 8RQCh. 9 - How does a business decide which depreciation...Ch. 9 - Prob. 10RQCh. 9 - Prob. 11RQCh. 9 - Prob. 12RQCh. 9 - Prob. 13RQCh. 9 - How is gain o r loss determined when disposing of...Ch. 9 - Prob. 15RQCh. 9 - Prob. 16RQCh. 9 - Prob. 17RQCh. 9 - Prob. 18RQCh. 9 - Prob. 19RQCh. 9 - What does it mean if an exchange of plant assets...Ch. 9 - Determining the cost of an asset Alton Clothing...Ch. 9 - Prob. 9.2SECh. 9 - Prob. 9.3SECh. 9 - Computing second-year depreciation and accumulated...Ch. 9 - Calculating partial-year depreciation On September...Ch. 9 - Prob. 9.6SECh. 9 - Prob. 9.7SECh. 9 - Discarding an asset On May 31, 2016, Choice...Ch. 9 - Selling an asset at gain or loss Mill Creek Golf...Ch. 9 - Selling an asset at gain or loss Pelman Company...Ch. 9 - Accounting for depletion of natural resources...Ch. 9 - Accounting for an intangible asset On March 1,...Ch. 9 - Prob. 9.13SECh. 9 - Prob. 9.14SECh. 9 - Prob. 9.15SECh. 9 - Prob. 9.16SECh. 9 - Prob. 9.17ECh. 9 - Making a lump-sum purchase of assets Dearwood...Ch. 9 - Prob. 9.19ECh. 9 - Computing depreciation-three methods Crackling...Ch. 9 - Changing an asset's useful life and residual value...Ch. 9 - Recording partial-year depreciation and sale of an...Ch. 9 - Prob. 9.23ECh. 9 - Prob. 9.24ECh. 9 - Prob. 9.25ECh. 9 - Prob. 9.26ECh. 9 - Computing asset turnover ratio Snap Dragon Photo...Ch. 9 - Prob. 9.28ECh. 9 - Measuring asset cost, units-of-production...Ch. 9 - Prob. 9.30APCh. 9 - Determining asset cost, recording first-year...Ch. 9 - Recording lump-sum asset purchases, depreciation,...Ch. 9 - Prob. 9.33APCh. 9 - Prob. 9.34APCh. 9 - Journalizing partial-year depreciation and asset...Ch. 9 - Prob. 9.36BPCh. 9 - Determining asset cost, recording rust-year...Ch. 9 - Recording lump-sum asset purchases, depreciation,...Ch. 9 - Prob. 9.39BPCh. 9 - Prob. 9.40BPCh. 9 - Journalizing partial-year depreciation and asset...Ch. 9 - Prob. 9.42CPCh. 9 - Western Bank Trust purchased land and a building...Ch. 9 - Prob. 9.1CTFCCh. 9 - Prob. 9.1CTFSCCh. 9 - In 150 words or fewer, explain the different...
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