Question

In: Finance

On January 1,2011, Company A purchased a vehicle costing $20,000. A certain vehicle upgrade of $3,000...

On January 1,2011, Company A purchased a vehicle costing $20,000. A certain vehicle upgrade of $3,000 was added with the purchase. Also, a delivery fee of $500 was included in the expense. The company expects the vehicle to be operational for 4 years at the end of which it can be sold for $5,000. Calculate depreciation expense for the year ended 31 Dec 2011, 2012, 2013 and 2014 using the following methods: (a) Use Straight Line Method(b) Sum of the Year’s Digit Depreciation (c) Declining Balance Method

Solutions

Expert Solution

please find answers in attached pics . on page 21 there are answer a and b and on page 22 answer c .

jeff jeffy answered 1 year ago
Next > < Previous

Related Solutions

On January 1,2011, Company A purchased a vehicle costing $20,000. A certain vehicle upgrade of $3,000...
On January 1,2011, Company A purchased a vehicle costing $20,000. A certain vehicle upgrade of $3,000 was added with the purchase. Also, a delivery fee of $500 was included in the expense. The company expects the vehicle to be operational for 4 years at the end of which it can be sold for $5,000. Calculate depreciation expense for the year ended 31 Dec 2011, 2012, 2013 and 2014 using the following methods: (a) Use Straight Line Method (b) Sum of...
Ross purchased a new commercial vehicle today for $25,000 with a down payment of $3,000. The...
Ross purchased a new commercial vehicle today for $25,000 with a down payment of $3,000. The amount was financed using a five-year loan with a 4 percent interest rate (compounded monthly). How much will Ross owe on his vehicle loan after making payments for three years?
On January 2, 2018, Baltimore Company purchased 20,000 shares of the stock of Towson Company at...
On January 2, 2018, Baltimore Company purchased 20,000 shares of the stock of Towson Company at $12 per share. Baltimore obtained significant influence as the purchase represents a 40% ownership stake in Towson Company. On August 1, 2018, Towson Company paid cash dividends of $15,000. Baltimore Company intended this investment to a long-term investment. On December 31, 2018, Towson Company reported $50,000 of net income for FY 2018. Additionally, the current market price for Towson Company's stock increased to $22...
On 1 January 2010, the CB Company purchased for $18000, new vehicle. The delivery cost was...
On 1 January 2010, the CB Company purchased for $18000, new vehicle. The delivery cost was a $2000. CB estimated the vehicle will have a residual value of $2000 at the end of its useful life of 6 years. CB Company estimated the vehicle could drive 180,000 km. The vehicle was driven 10,000 km during the year ending at 30 June 2010; 20000 km in the year ending 30 June 2011; 5000 km in the year ending 30 June 2012....
Some company purchased a vehicle for deliveries for $45,000 at the beginning of 2017. The vehicle...
Some company purchased a vehicle for deliveries for $45,000 at the beginning of 2017. The vehicle had an estimated life of 6 years, and an estimated residual value of $3,000. Company used the straight-line depreciation method. At the beginning of 2021, company incurred $4,000 to replace the vehicle's transmission. This resulted in a 2-year extension of the vehicle's useful life and a revised residual value of $1,000. How much annual depreciation expense should the company record for the remaining four...
On January 1, 2018, Byner Company purchased a used tractor. Byner paid $3,000 down and signed...
On January 1, 2018, Byner Company purchased a used tractor. Byner paid $3,000 down and signed a noninterest-bearing note requiring $44,000 to be paid on December 31, 2020. The fair value of the tractor is not determinable. An interest rate of 11% properly reflects the time value of money for this type of loan agreement. The company’s fiscal year-end is December 31. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of...
When originally purchased, a vehicle costing $23,000 had anestimated useful life of 8 years and...
When originally purchased, a vehicle costing $23,000 had an estimated useful life of 8 years and an estimated salvage value of $3,000. After 4 years of straight-line depreciation, the asset's total estimated useful life was revised from 8 years to 6 years and there was no change in the estimated salvage value. The depreciation expense in year 5 equals:Select one:a. $2,875.b. $11,500.c. $5,750.d. $5,000.
When originally purchased, a vehicle costing $24,300 had an estimated useful life of 8 years and...
When originally purchased, a vehicle costing $24,300 had an estimated useful life of 8 years and an estimated salvage value of $2,300. After 4 years of straight-line depreciation, the asset's total estimated useful life was revised from 8 years to 6 years and there was no change in the estimated salvage value. The depreciation expense in year 5 equals:
Pru & Co. purchased a vehicle for $48,000 on 1 January 2020. Its Accumulated Depreciation as...
Pru & Co. purchased a vehicle for $48,000 on 1 January 2020. Its Accumulated Depreciation as at 31 December 2023 is $28,000. The Co. uses straight line method of Depreciation. The Trademark was sold for $18,000 as at 31 December 2023 ? Pru & Co. uses calendar year accounting period. What is the result of the sale?
Is this an SRS? A large national telecommunications company has about 20,000 non-management employees and 3,000...
Is this an SRS? A large national telecommunications company has about 20,000 non-management employees and 3,000 management employees. A survey of employee opinion about recent changes in health care coverage selects 400 of the non-management employees at random and 60 of the management employees at random. The 460 employees make up the sample. a) Does this sampling method give each employee an equal chance to be chosen? Why or why not? b) Is this an SRS? Why or why not?
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT