In: Accounting
Depreciation for Partial Periods
Bar Delivery Company purchased a new delivery truck for $36,000 on April 1, 2019. The truck is expected to have a service life of 10 years or 180,000 miles and a residual value of $3,000. The truck was driven 12,000 miles in 2019 and 16,000 miles in 2020. Bar computes depreciation expense to the nearest whole month.
Required:
2019 | $ fill in the blank 1 |
2020 | $ fill in the blank 2 |
2019 | $ fill in the blank 3 |
2020 | $ fill in the blank 4 |
2019 | $ fill in the blank 5 |
2020 | $ fill in the blank 6 |
2019 | $ fill in the blank 7 |
2020 | $ fill in the blank 8 |
2019 | $ fill in the blank 9 |
2020 | $ fill in the blank 10 |
2019 | $ fill in the blank 11 |
2020 | $ fill in the blank 12 |
2019 | $ fill in the blank 13 |
2020 | $ fill in the blank 14 |
2019 | $ fill in the blank 15 |
2020 | $ fill in the blank 16 |
1 | Depreciation under SLM= | Original cost - Scrap Value / Useful Life | |||||||
36000 - 3000 / 10 | |||||||||
3300 | |||||||||
Straight-line method | 2019 | 2020 | |||||||
Depreciation Expense= | 2475 | 3300 | |||||||
(3300 * 9months/ 12 months) | |||||||||
Year 2019 | 30525 | (33000-2475 | |||||||
2020 | 27225 | (30525-3300 | |||||||
2 | Sum of Year of Digit Method | ||||||||
Year | Estimated useful life | SYD | Annual Deprecitaion | Book Value at the end | |||||
2019 | 10 | 10/55 | 6000 | (33000*10/55') | 27000 | (33000-6000) | |||
2020 | 9 | 9/55' | 5400 | (33000 * 9 / 55') | 21600 | (27000-5400) | |||
2021 | 8 | ||||||||
2022 | 7 | ||||||||
2023 | 6 | ||||||||
2024 | 5 | ||||||||
2025 | 4 | ||||||||
2026 | 3 | ||||||||
2027 | 2 | ||||||||
2028 | 1 | ||||||||
55 | |||||||||
3 | Double Declining Method Rate | ||||||||
Double Declining Rate = 100 / Useful Life * 100 | |||||||||
Double Declining Method Rate = 10 / 100 * 100 | |||||||||
Double Declining Method Rate = 10% | |||||||||
Double Declining Method Rate = Double Declining Rate * 2 | |||||||||
10 * 2' | |||||||||
Double Declining Method Rate = 20% | |||||||||
Year | Book Value at Begaining | Depreciation | Depreciation at the end | ||||||
2019 | 36000 | 7200 | 28800 | ||||||
2020 | 28800 | 5760 | 23040 | ||||||
4) | Activity Based Depreciation | ||||||||
Depreciation =( Cost of Assets - Salvage)* Actual Activity / Estimated Activity | |||||||||
Related SolutionsDepreciation for Partial Periods Bar Delivery Company purchased a new delivery truck for $52,200 on April...Depreciation for Partial Periods
Bar Delivery Company purchased a new delivery truck for $52,200
on April 1, 2016. The truck is expected to have a service life of
10 years or 144,000 miles and a residual value of $1,920. The truck
was driven 9,200 miles in 2016 and 11,300 miles in 2017. Bar
computes depreciation to the nearest whole month.
Required:
Compute depreciation expense for 2016 and 2017 using the
For interim computations, carry amounts out to two decimal places....
Depreciation for Partial Periods Chambers Delivery Company purchased a new delivery truck for $46,200 on April...Depreciation for Partial Periods
Chambers Delivery Company purchased a new delivery truck for
$46,200 on April 1, 2016. The truck is expected to have a service
life of 10 years or 130,800 miles and a residual value of $4,680.
The truck was driven 9,700 miles in 2016 and 13,400 miles in 2017.
Chambers computes depreciation to the nearest whole month.
Required:
Compute depreciation expense for 2016 and 2017 using the
For interim computations, carry amounts out to two decimal places....
Depreciation for Partial Periods Storm Delivery Company purchased a new delivery truck for $66,000 on April...Depreciation for Partial Periods
Storm Delivery Company purchased a new delivery truck for
$66,000 on April 1, 2019. The truck is expected to have a service
life of 5 years or 90,000 miles and a residual value of $3,000. The
truck was driven 12,000 miles in 2019 and 14,000 miles in 2020.
Storm computes depreciation expense to the nearest whole month.
Required:
Compute depreciation expense for 2019 and 2020 using the
following methods: (Round your answers to the nearest
dollar.)...
Depreciation for Partial Periods Clifford Delivery Company purchased a new delivery truck for $54,600 on April...Depreciation for Partial Periods
Clifford Delivery Company purchased a new delivery truck for
$54,600 on April 1, 2016. The truck is expected to have a service
life of 10 years or 109,200 miles and a residual value of $4,800.
The truck was driven 11,300 miles in 2016 and 12,700 miles in 2017.
Clifford computes depreciation to the nearest whole month.
Required:
Compute depreciation expense for 2016 and 2017 using the
For interim computations, carry amounts out to two decimal places....
Bar Delivery Company purchased a new delivery truck for $36,000 on April 1, 2019. The truck...Bar Delivery Company purchased a new delivery truck for $36,000
on April 1, 2019. The truck is expected to have a service life of 5
years or 120,000 miles and a residual value of $3,000. The truck
was driven 10,000 miles in 2019 and 18,000 miles in 2020. Bar
computes depreciation expense to the nearest whole month.
Compute depreciation expense for 2019 and 2020 using the
following methods: (Round your answers to the nearest
dollar.)
Straight-line method
2019
$
2020...
Clifford Delivery Company purchased a new delivery truck for $72,000 on April 1, 2019. The truck...Clifford Delivery Company purchased a new delivery truck for
$72,000 on April 1, 2019. The truck is expected to have a service
life of 5 years or 90,000 miles and a residual value of $3,000. The
truck was driven 8,000 miles in 2019 and 20,000 miles in 2020.
Clifford computes depreciation expenses to the nearest whole
month.
Required:
Compute depreciation expense for 2019 and 2020 using the
following methods: (Round your answers to the nearest
dollar.)
Straight-line method
2019
$...
Storm Delivery Company purchased a new delivery truck for $53,400 on April 1, 2016. The truck...Storm Delivery Company purchased a new delivery truck for
$53,400 on April 1, 2016. The truck is expected to have a service
life of 5 years or 150,000 miles and a residual value of $4,320.
The truck was driven 8,200 miles in 2016 and 11,800 miles in 2017.
Storm computes depreciation to the nearest whole month.
Required:
Compute depreciation expense for 2016 and 2017 using the
For interim computations, carry amounts out to two decimal places.
Round your final answers...
Bean Delivery Company purchased a new delivery truck for $58,200 on April 1, 2016. The truck...Bean Delivery Company purchased a new delivery truck for $58,200
on April 1, 2016. The truck is expected to have a service life of 5
years or 122,400 miles and a residual value of $4,800. The truck
was driven 9,000 miles in 2016 and 10,700 miles in 2017. Bean
computes depreciation to the nearest whole month.
Required:
Compute depreciation expense for 2016 and 2017 using the
For interim computations, carry amounts out to two decimal places.
Round your final answer...
On January 1, Town Spa Pizza purchased a delivery truck for $36,000. The truck has an...On January 1, Town Spa Pizza purchased a delivery truck for
$36,000. The truck has an estimated useful life of 10 years or
140,000 miles and an estimated residual value of $8,000. Town Spa’s
fiscal year is the calendar year. Calculate the amounts requested
below.
1)Depreciation Expense for the year, using the production
method. Assume 22,000 miles were driven this year:
A) $4,400
B) $5,657
C)2,800
D)3,600
2)The total accumulated depreciation after the truck has been
used for 5 years,...
Company recently purchased a new delivery truck. The new truck cost $22,500, and it is expected...Company recently purchased a new delivery truck. The new truck
cost $22,500, and it is expected to generate net after-tax
operating cash flows, including depreciation, of $6,250 per year.
The truck has a 5-year expected life. The expected salvage values
after tax adjustments for the truck are given below. The company's
cost of capital is 12.5 percent.
Year/ Annual Operating Cash Flow/ Salvage Value
0/ $22,500/ $22,500
1/ 6,250/ 17,500
2/ 6,250/ 14,000
3/ 6,250/ 11,000
4/ 6,250/ 5,000
5/...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
ADVERTISEMENT
|