Question
In: Accounting
Nevertire Ltd purchased a delivery van costing $52,000. It is expected to have a residual value...
Nevertire Ltd purchased a delivery van costing $52,000. It is
expected to have a residual value of $12,000 at the end of its
useful life of 4 years or 200,000 kilometres. Ignore GST.
Required:
a) Assume the van was purchased on 1 July 2019 and that the
accounting period ends on 30 June. Calculate the depreciation
expense for the second year using each of the following
depreciation methods
• straight-line
• diminishing balance (depreciation rate has been calculated
as 31%)
• units of production (assume the van was driven 50,000
kilometers in the first year and 78,000 kilometres during the
second financial year).
b) Record the adjusting entries for the depreciation at the
end of the second financial year using straight-line method. (1
mark)
c) Show how the van would appear in the balance sheet prepared
at the end of year 2 using Straight-line method.
Solutions
Expert Solution
Formula:
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Hope you Understood.
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Thank you.
ekkarill92 answered 2 years agoRelated Solutions
Nevertire Ltd purchased a delivery van costing $52,000. It is expected to have a residual value...
Nevertire Ltd purchased a delivery van costing $52,000. It is
expected to have a residual value of $12,000 at the end of its
useful life of 4 years or 200,000 kilometres. Ignore GST.
Required:
Assume the van was purchased on 1 July 2019 and that the
accounting period ends on 30 June. Calculate the depreciation
expense for the second year using each of the
following depreciation methods
straight-line
diminishing balance (depreciation rate has been calculated as
31%)
units of production...
Week 10 Nevertire Ltd purchased a delivery van costing $52,000. It is expected to have a...
Week 10
Nevertire Ltd purchased a delivery van costing $52,000. It is
expected to have a residual value of $12,000 at the end of its
useful life of 4 years or 200,000 kilometres. Ignore GST.
Required:
a) Assume the van was purchased on 1 July 2019 and that the
accounting period ends on 30 June.
Calculate the depreciation expense for the year 2019–20 using
each of the following depreciation methods
straight-line
diminishing balance (depreciation rate has been calculated...
Depreciation methods Nevertire Ltd purchased a delivery van costing $52 000. It is expected to have...
Depreciation methods
Nevertire Ltd purchased a delivery van costing $52 000. It is
expected to have a residual value of $12 000 at the end of its
useful life of 4 years or 200 000 kilometres. Ignore GST. Required
(a) Assume the van was purchased on 2 July 2019 and that the
accounting period ends on 30 June. Calculate the depreciation
expense for the year 2019–2020 using each of the following
depreciation methods: i. straight‐line ii. diminishing balance iii.
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125,000 miles. Assume that the truck was purchased on January 2.
Calculate the depreciation expense for the second year using each
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A small truck is purchased for $52,000. It is expected to be of use to the...
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On January 1, 2021, the Excel Delivery Company purchased a delivery van for $46,000. At the...
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Required:
Calculate annual depreciation for the five-year life of the van
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rev: 05_15_2019_QC_CS-168776, 11_22_2019_QC_CS-191707
Exercise 11-1 (Algo) Part 1
1. Straight line.
2. Double-declining balance. (Round
your answers to...
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