Question

In: Accounting

Cambridge Company purchased a truck on January 1, 2018. Cambridge paid $15,000 for the truck. The...

Cambridge Company purchased a truck on January 1, 2018. Cambridge paid $15,000 for the truck. The truck is expected to have a $2,000 residual value and a 6-year life. Cambridge has a December 31 fiscal year end. Using the straight-line method, how much is the 2019 depreciation expense? (Enter only whole dollar values.)

Solutions

Expert Solution

Answer)

Calculation of Depreciation expense for the year 2019

Depreciation expense = (Original cost – Salvage value)/ Number of years of useful life of the Asset

                                          = ($ 15,000 - $ 2,000)/ 6 years

                                          = $ 2,166.67 or $ 2,167 (rounded off)   

Therefore depreciation expense for the year 2019 is $ 2,167.

Note: Under straight line depreciation method, same amount of depreciation is charged each year over the life of the asset. Therefore $ 2,167 (rounded off) will be the depreciation expense for the year 2019.


Related Solutions

On January 1​, 2018​, On Time Delivery Service purchased a truck at a cost of $75,000....
On January 1​, 2018​, On Time Delivery Service purchased a truck at a cost of $75,000. Before placing the truck in​ service, On Time spent $2,200 painting​ it, $1,700 replacing​ tires, and $9,100 overhauling the engine. The truck should remain in service for five years and have a residual value of $10,000. The​ truck's annual mileage is expected to be 27,000 miles in each of the first four years and 12,000 miles in the fifth year—120,000 miles in total. In...
The truck was purchased on January 1, 2018 for $100,000 and is depreciated using the double-declining...
The truck was purchased on January 1, 2018 for $100,000 and is depreciated using the double-declining balance method. The truck has a salvage value of $10,000 and an estimated useful life of five years. On December 31, sold truck for $30,000 cash. Hint: Two years (2018 and 2019) of depreciation expense have been recorded and the total depreciation for the two-year period is in accumulated depreciation immediately before the sale of the truck. Please let me know what the debit...
The truck was purchased on January 1, 2018 for $100,000 and is depreciated using the double-declining...
The truck was purchased on January 1, 2018 for $100,000 and is depreciated using the double-declining balance method. The truck has a salvage value of $10,000 and an estimated useful life of five years. On December 31, sold truck for $30,000 cash. Hint: Two years (2018 and 2019) of depreciation expense have been recorded and the total depreciation for the two-year period is in accumulated depreciation immediately before the sale of the truck. Please let me know what the debit...
On January 1, Year 1, Friedman Company purchased a truck that cost $52,000. The truck had...
On January 1, Year 1, Friedman Company purchased a truck that cost $52,000. The truck had an expected useful life of 200,000 miles over 8 years and an $9,000 salvage value. During Year 2, Friedman drove the truck 27,000 miles. Friedman uses the units-of-production method. What is depreciation expense in Year 2? (Do not round intermediate calculations.): rev: 11_10_2018_QC_CS-147760 Multiple Choice $5,805 $7,020 $5,375 $6,500 17)Dinkins Company purchased a truck that cost $72,000. The company expected to drive the truck...
On January 1, 2019, Rowley Company purchased a truck that cost $55,000. The truck had an...
On January 1, 2019, Rowley Company purchased a truck that cost $55,000. The truck had an expected useful life of 5 years and a $5,000 salvage value. The amount of depreciation expense on the 2019 Income Statement assuming that Rowley uses the straight line method is: Group of answer choices $10,000 $11,000 $5,000 None of these 2. On January 1, 2018, Rowley Company purchased a truck that cost $50,000. The truck had an expected useful life of 5 years and...
Swifty Company purchased a delivery truck for $26,000 on January 1, 2020. The truck has an...
Swifty Company purchased a delivery truck for $26,000 on January 1, 2020. The truck has an expected salvage value of $1,000, and is expected to be driven 100,000 miles over its estimated useful life of 10 years. Actual miles driven were 12,800 in 2020 and 12,000 in 2021. Calculate depreciation expense per mile under units-of-activity method. (Round answer to 2 decimal places, e.g. 0.50.) Depreciation expense $ per mile eTextbook and Media List of Accounts Compute depreciation expense for 2020...
Linton Company purchased a delivery truck for $28,000 on January 1, 2017. The truck has an...
Linton Company purchased a delivery truck for $28,000 on January 1, 2017. The truck has an expected salvage value of $2,200, and is expected to be driven 110,000 miles over its estimated useful life of 10 years. Actual miles driven were 12,300 in 2017 and 10,000 in 2018. Collapse question part (a1) Correct answer. Your answer is correct. Calculate depreciation expense per mile under units-of-activity method. (Round answer to 2 decimal places, e.g. 0.52.) Depreciation expense $Entry field with correct...
linton company purchased a delivery truck for 33.000 on january 1 2017 the truck has an...
linton company purchased a delivery truck for 33.000 on january 1 2017 the truck has an expected salvage value of 1,300 and is expected to be driving 109,000 miles over its esitmated useful of life of 9 years. acutal miles driving were 15,400 for 2017 and 12,500 in 2018 what is the depreication expense for 2017 and 2018 using the stright line method , the unit of activity method and the decling balance method
Linton Company purchased a delivery truck for $29,000 on January 1, 2017. The truck has an...
Linton Company purchased a delivery truck for $29,000 on January 1, 2017. The truck has an expected salvage value of $2,100, and is expected to be driven 106,000 miles over its estimated useful life of 10 years. Actual miles driven were 15,300 in 2017 and 13,400 in 2018. Correct answer. Your answer is correct. Calculate depreciation expense per mile under units-of-activity method. (Round answer to 2 decimal places, e.g. 0.52.) Depreciation expense $Entry field with correct answer .25 per mile...
Home Builders Inc. purchased a truck for $60,000 on January 1, 2018. It has an expected...
Home Builders Inc. purchased a truck for $60,000 on January 1, 2018. It has an expected salvage value of $11,000 at the end of its seven-year useful life. How much is combined depreciation expense in 2018 and 2019 using straight-line depreciation? How much is depreciation expense in 2018 using double-declining balance depreciation? How much is depreciation expense in 2019 using double-declining balance depreciation? How much is depreciation expense in 2018 using sum-of-years digits depreciation? How much is depreciation expense in...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT