Question
In: Accounting
City Taxi Service purchased a new auto to use as a taxi on January 1, 2018,...
City Taxi Service purchased a new auto to use as a taxi on January 1, 2018, for $36,000. In addition, City paid sales tax and title fees of $1,200 for the vehicle. The taxi is expected to have a five-year life and a salvage value of $4,000.
Using the straight-line method, compute the depreciation expense for 2018 and 2019.
Assume the van was sold on January 1, 2020, for $21,000. Determine the amount of gain or loss that would be recognized on the asset disposal. (Amounts to be deducted should be indicated with minus sign.)
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cant get the lost correcy
Solutions
ekkarill92 answered 1 year agoRelated Solutions
City Taxi Service purchased a new auto to use as a taxi on January 1, Year...
City Taxi Service purchased a new auto to use as a taxi on
January 1, Year 1, for $20,800. In addition, City paid sales tax
and title fees of $1,390 for the vehicle. The taxi is expected to
have a five-year life and a salvage value of $6,980.
Required
a. Using the straight-line method, compute the
depreciation expense for Year 1 and Year 2. (Round your
answers to the nearest whole dollar amount.)
b. Assume the van was sold on...
On January 1, Year 1, the City Taxi Company purchased a new taxi cab for $90,000....
On January 1, Year 1, the City Taxi Company purchased a new taxi
cab for $90,000. The cab has an expected salvage value of $38,000.
The company estimates that the cab will be driven 200,000 miles
over its life. It uses the units-of-production method to determine
depreciation expense. The cab was driven 45,000 miles the first
year and 102,000 the second year. What would be the depreciation
expense reported on the Year 2 income statement and the book value
of...
On January 1, Year 1, the City Taxi Company purchased a new taxi cab for $90,000....
On January 1, Year 1, the City Taxi Company purchased a new taxi
cab for $90,000. The cab has an expected salvage value of $38,000.
The company estimates that the cab will be driven 200,000 miles
over its life. It uses the units-of-production method to determine
depreciation expense. The cab was driven 45,000 miles the first
year and 102,000 the second year. What would be the depreciation
expense reported on the Year 2 income statement and the book value
of...
Becker Office Service purchased a new computer system on January 1, 2018, for $31,900. It is...
Becker Office Service purchased a new computer system on January 1,
2018, for $31,900. It is expected to have a five-year useful life
and a $3,700 salvage value. Becker Office Service expects to use
the computer system more extensively in the early years of its
life.
Calculate the depreciation expense for each of the five years,
assuming the use of double-declining-balance depreciation. (Enter
all amounts as positive values. Do not round intermediate
calculations. Round "SL rate" answers to 2 decimal...
Speedy Taxi Service purchased a new cab for $33,500. It is expected to have a salvage...
Speedy Taxi Service purchased a new cab for $33,500. It is
expected to have a salvage value of $1000 and a life of 3 years.
The cab is expected to be driven 150,000 miles over those three
years. It has been driven 30,000 miles in year 1 and 20,000 miles
in year 2.
Compute the annual depreciation for the first two years under
each of the following methods:
Straight Line
Units-of-Activity
Double-Declining
If you were the owner of the Taxi...
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...
On January 1, 2018, the Allegheny Corporation purchased machinery for $146,000. The estimated service life of...
On January 1, 2018, the Allegheny Corporation purchased
machinery for $146,000. The estimated service life of the machinery
is 10 years and the estimated residual value is $3,000. The machine
is expected to produce 220,000 units during its life.
Required:
Calculate depreciation for 2018 and 2019 using each of the
following methods.
1. Straight line.
2. Sum-of-the-years'-digits.
3. Double-declining balance.
4. One hundred fifty percent declining
balance.
5. Units of production (units produced in 2018,
38,000; units produced in 2019,...
On January 1, 2018, the Allegheny Corporation purchased machinery for $170,000. The estimated service life of...
On January 1, 2018, the Allegheny Corporation purchased
machinery for $170,000. The estimated service life of the machinery
is 10 years and the estimated residual value is $5,000. The machine
is expected to produce 300,000 units during its life. Required:
Calculate depreciation for 2018 and 2019 using each of the
following methods.
1. Straight line.
2. Sum-of-the-years'-digits.
3. Double-declining balance.
4. One hundred fifty percent declining balance.
5. Units of production (units produced in 2018, 45,000; units
produced in 2019,...
On January 1, 2018, the Allegheny Corporation purchased machinery for $148,000. The estimated service life of...
On January 1, 2018, the Allegheny Corporation purchased
machinery for $148,000. The estimated service life of the machinery
is 10 years and the estimated residual value is $16,000. The
machine is expected to produce 400,000 units during its life.
Required:
Calculate depreciation for 2018 and 2019 using each of the
following methods.
1. Straight line.
2. Sum-of-the-years'-digits.
3. Double-declining balance.
4. One hundred fifty percent declining
balance.
5. Units of production (units produced in 2018,
48,000; units produced in 2019,...
A New York City taxi medallion, which gives the owner a license to operate a taxi,...
A New York City taxi medallion, which gives the owner a license
to operate a taxi, is a valuable commodity. Medallions trade in a
weekly market at about a $1M each. There are 15,000 medallions
outstanding today, the same as over 75 years ago. The taxi services
market is an example of monopoly-like control of competition
sanctioned by government regulation -- the New York City Taxi
Commission. In the New York City taxi market, suppose weekly demand
for taxi trips...
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