Question
In: Accounting
Three different companies each purchased trucks on January 1, 2018, for $50,000. Each truck was expected...
Three different companies each purchased trucks on January 1, 2018, for $50,000. Each truck was expected to last four years or 200,000 miles. Salvage value was estimated to be $5,000. All three trucks were driven 66,000 miles in 2018, 42,000 miles in 2019, 40,000 miles in 2020, and 60,000 miles in 2021. Each of the three companies earned $40,000 of cash revenue during each of the four years. Company A uses straight-line depreciation, company B uses double-declining-balance depreciation, and company C uses units-of-production depreciation.
Answer each of the following questions. Ignore the effects of income taxes.
b-1. Calculate the net income for 2021?
Company A:
Company B:
Company C:
c-1. Calculate the book value on the December 31, 2020, balance sheet? (Round "Per Unit Cost" to 3 decimal places.)
Company A:
Company B:
Company C:
d-1 Calculate the retained earnings on the December 31, 2021, balance sheet?
Company A:
Company B:
Company C:
Solutions
Expert Solution
for formulas and calculations, refer to the image below -
ekkarill92 answered 2 years agoRelated Solutions
Three different companies each purchased trucks on January 1, 2018, for $76,000. Each truck was expected...
Three different companies each purchased trucks on January 1,
2018, for $76,000. Each truck was expected to last four years or
250,000 miles. Salvage value was estimated to be $6,000. All three
trucks were driven 81,000 miles in 2018, 55,000 miles in 2019,
46,000 miles in 2020, and 71,000 miles in 2021. Each of the three
companies earned $65,000 of cash revenue during each of the four
years. Company A uses straight-line depreciation, company B uses
double-declining-balance depreciation, and company...
Three different companies each purchased trucks on January 1, 2018, for $76,000. Each truck was expected...
Three different companies each purchased trucks on January 1,
2018, for $76,000. Each truck was expected to last four years or
250,000 miles. Salvage value was estimated to be $6,000. All three
trucks were driven 81,000 miles in 2018, 55,000 miles in 2019,
46,000 miles in 2020, and 71,000 miles in 2021. Each of the three
companies earned $65,000 of cash revenue during each of the four
years. Company A uses straight-line depreciation, company B uses
double-declining-balance depreciation, and company...
Three different companies each purchased trucks on January 1, 2018, for $74,000. Each truck was expected...
Three different companies each purchased trucks on January 1,
2018, for $74,000. Each truck was expected to last four years or
250,000 miles. Salvage value was estimated to be $5,000. All three
trucks were driven 80,000 miles in 2018, 60,000 miles in 2019,
45,000 miles in 2020, and 70,000 miles in 2021. Each of the three
companies earned $63,000 of cash revenue during each of the four
years. Company A uses straight-line depreciation, company B uses
double-declining-balance depreciation, and company...
Three different companies each purchased trucks on January 1, 2018, for $74,000. Each truck was expected...
Three different companies each purchased trucks on January 1,
2018, for $74,000. Each truck was expected to last four years or
250,000 miles. Salvage value was estimated to be $5,000. All three
trucks were driven 80,000 miles in 2018, 60,000 miles in 2019,
45,000 miles in 2020, and 70,000 miles in 2021. Each of the three
companies earned $63,000 of cash revenue during each of the four
years. Company A uses straight-line depreciation, company B uses
double-declining-balance depreciation, and company...
Three different companies each purchased trucks on January 1, 2018, for $82,000. Each truck was expected...
Three different companies each purchased trucks on January 1,
2018, for $82,000. Each truck was expected to last four years or
250,000 miles. Salvage value was estimated to be $6,000. All three
trucks were driven 79,000 miles in 2018, 56,000 miles in 2019,
51,000 miles in 2020, and 71,000 miles in 2021. Each of the three
companies earned $71,000 of cash revenue during each of the four
years. Company A uses straight-line depreciation, company B uses
double-declining-balance depreciation, and company...
Three different companies each purchased trucks on January 1, 2018, for $74,000. Each truck was expected...
Three different companies each purchased trucks on January 1,
2018, for $74,000. Each truck was expected to last four years or
250,000 miles. Salvage value was estimated to be $5,000. All three
trucks were driven 80,000 miles in 2018, 60,000 miles in 2019,
45,000 miles in 2020, and 70,000 miles in 2021. Each of the three
companies earned $63,000 of cash revenue during each of the four
years. Company A uses straight-line depreciation, company B uses
double-declining-balance depreciation, and company...
Three different companies each purchased trucks on January 1, Year 1, for $60,000. Each truck was...
Three different companies each purchased trucks on January 1,
Year 1, for $60,000. Each truck was expected to last four years or
250,000 miles. Salvage value was estimated to be $5,000. All three
trucks were driven 79,000 miles in Year 1, 47,000 miles in Year 2,
51,000 miles in Year 3, and 74,000 miles in Year 4. Each of the
three companies earned $49,000 of cash revenue during each of the
four years. Company A uses straight-line depreciation, company B...
Three different companies each purchased trucks on January 1, Year 1, for $72,000. Each truck was expected to last four years or 200,000 miles.
Three different companies each purchased trucks on January 1, Year 1, for $72,000. Each truck was expected to last four years or 200,000 miles. Salvage value was estimated to be $7,000. All three trucks were driven 67,000 miles in Year 1, 42,000 miles in Year 2, 40,000 miles in Year 3, and 62,000 miles in Year 4. Each of the three companies earned $61,000 of cash revenue during each of the four years. Company A uses straight-line depreciation, company B...
I JUST NEED THE ANSWER, THX. Three different companies each purchased trucks on January 1, 2018,...
I JUST NEED THE ANSWER, THX.
Three different companies each purchased trucks on January 1,
2018, for $80,000. Each truck was expected to last four years or
250,000 miles. Salvage value was estimated to be $4,000. All three
trucks were driven 78,000 miles in 2018, 55,000 miles in 2019,
50,000 miles in 2020, and 70,000 miles in 2021. Each of the three
companies earned $69,000 of cash revenue during each of the four
years. Company A uses straight-line depreciation, company...
Ram Corporation purchased a new truck on January 1, 2020 for $50,000. The truck is expected to...
Ram Corporation purchased a new truck on January 1, 2020 for
$50,000. The truck is expected to last five years with a
residual value of $10,000. Using straight-line
depreciation, show the effect on the income statement and balance
sheet of this transaction over the next five years.
Income statement
2020 2021 2022 2023 2024
Depreciation
expense $8000 $8000 $8000 $8000 $8000
Balance Sheet
2020 2021 2022 2023 2024
Equipment $ $ $ $ $
Less: accumulated
Depreciation ( ) ( ) ( ) ( ) ( )
Book
value $ $ $ $ $
Part II – Chapter 8
Company
A Company
B Company
C
Days sales in
receivables 8.3
days 39.9
days 60.3
days
Days sales in
inventory 2.3...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- An investor is considering purchasing a Treasury bond with a 20 year maturity, an 8% coupon...
- Write a program that copies the contents of one file to a destination file. This program...
- how to conduct a marketing mix for 3d crest white strips
- Is big data analytics used for service innovation at Amazon? If so, please write a brief...
- A shrink-fit process has been used to enhance the pressure carrying capacity of a cylinder. During...
- Ten-year zero coupon bonds issued by the U.S. Treasury have a face value of $1,000 and...
- The Blossom Department of Transportation has issued 25-year bonds that make semiannual coupon payments at a...
ADVERTISEMENT