On January 1, Year 1, the City Taxi Company purchased a new taxi cab for $63,000....
On January 1, Year 1, the City Taxi Company purchased a new taxi cab for $63,000. The cab has an expected salvage value of $20,000. 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 75,000 the second year. What would be the depreciation expense reported on the Year 2 income statement and the book value of the taxi, respectively, at the end of Year 2?
$23,625 and $25,200.
$23,625 and $5,200.
$16,125 and $37,200.
$16,125 and $17,200.
Homework Answers
|
Depreciation expense for year 1 = (Cost - Salvage value)/total life * miles driven = (63000-20000)/200000*45000 = 9675 Depreciation expense for year 2 = (63000-20000)/200000*75000 = 16125 Book value at the end of the year 2 = 63000 - (9675+16125) = 37200 Option C is the answer |
|
Add Answer to:
On January 1, Year 1, the City Taxi Company purchased a new taxi
cab for $63,000....
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 $960 for the vehicle. The taxi is expected to have a five-year life and a salvage value of $6,850. Required a. Using the straight-line method, compute the depreciation expense for Year 1 and Year 2. b & c. Assume that the taxi was sold on January 1, Year 3, for $18,165....
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 $22,200. In addition, City paid sales tax and title fees of $1,440 for the vehicle. The taxi is expected to have a five-year life and a salvage value of $5,990. Required a. Using the straight-line method, compute the depreciation expense for Year 1 and Year 2. b & c. Assume that the taxi was sold on January 1, Year 3, for $19,067....
Crane Taxi Service uses the units-of-activity method in computing depreciation on its taxicabs. Each cab is...
Crane Taxi Service uses the units-of-activity method in computing depreciation on its taxicabs. Each cab is expected to be driven 140,000 miles. Taxi 10 cost $28,300 and is expected to have a salvage value of $300. Taxi 10 was driven 28,000 miles in 2021 and 33,600 miles in 2022. Determine the depreciation cost. (Round answer to 2 decimal places, e.g. 1.25.) Depreciable cost $ per unit e Textbook and Media Compute the depreciation for each year. 2021 2022 Depreciation expense...
Blossom Taxi Service uses the units-of-activity method in computing depreciation on its taxicabs. Each cab is...
Blossom Taxi Service uses the units-of-activity method in computing depreciation on its taxicabs. Each cab is expected to be driven 145,000 miles. Taxi 10 cost $29,600 and is expected to have a salvage value of $600. Taxi 10 was driven 27,000 miles in 2021 and 33,700 miles in 2022 Determine the depreciation cost. (Round answer to 2 decimal places, e.g. 1.25.) $ Depreciable cost per unit eTextbook and Media Compute the depreciation for each year. 2021 2022 Depreciation expense tA
Sandhill Taxi Service uses the units-of-activity method in computing depreciation on its taxicabs. Each cab is...
Sandhill Taxi Service uses the units-of-activity method in computing depreciation on its taxicabs. Each cab is expected to be driven 141,000 miles. Taxi 10 cost $28,700 and is expected to have a salvage value of $500. Taxi 10 was driven 28,000 miles in 2021 and 30,900 miles in 2022. Determine the depreciation cost. (Round answer to 2 decimal places, e.g. 1.25.) per unit per unit Depreciable cost eTextbook and Media Compute the depreciation for each year. 2021 2022 Depreciation expense...
Cullumber Taxi Service uses the units-of-activity method in computing depreciation on its taxicabs. Each cab is...
Cullumber Taxi Service uses the units-of-activity method in computing depreciation on its taxicabs. Each cab is expected to be driven 146,000 miles. Taxi 10 cost $29,500 and is expected to have a salvage value of $300. Taxi 10 was driven 29,000 miles in 2021 and 34,500 miles in 2022. Determine the depreciation cost. (Round answer to 2 decimal places, e.g. 1.25.) per unit Depreciable cost? e Textbook and Media Compute the depreciation for each year. 2021 2022 Depreciation expense $
Wildhorse Taxi Service uses the units-of-activity method in computing depreciation on its taxicabs. Each cab is...
Wildhorse Taxi Service uses the units-of-activity method in computing depreciation on its taxicabs. Each cab is expected to be driven 144,000 miles. Taxi 10 cost $29,000 and is expected to have a salvage value of $200. Taxi 10 was driven 31,000 miles in 2021 and 33,500 miles in 2022. Determine the depreciation cost. (Round answer to 2 decimal places, e.g. 1.25.) per unit Depreciable costs e Textbook and Media Compute the depreciation for each year. 2021 2022 Depreciation expense $
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 $22,900. In addition, City paid sales tax and title fees of $1,490 for the vehicle. The taxi is expected to have a five-year life and a salvage value of $6,130. 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, Your Ride Inc. paid $26,000 cash to purchase a taxi cab....
On
January 1, Year 1, Your Ride Inc. paid $26,000 cash to purchase a
taxi cab. The taxi had a 6-year useful life and a $3,500 salvage
value.
required:
a. determine the amount of depreciation expense that would
appear on the year 1 and year 2 income statements.
b. determine the amount of accumulated depreciation that would
appear on the year 1 and year 2 balance sheets.
On January 1, Year 1. Your Ride Inc. paid $26,000 cash to purchase...
Carla Vista Taxi Service uses the units-of-activity method in computing depreciation on its taxicabs. Each cab is expect...
Carla Vista Taxi Service uses the units-of-activity method in computing depreciation on its taxicabs. Each cab is expected to be driven 151,000 miles. Taxi 10 cost $30,600 and is expected to have a salvage value of $400. Taxi 10 was driven 27,000 miles in 2021 and 30,100 miles in 2022. Determine the depreciation cost. (Round answer to 2 decimal places, e.g. 1.25.) Depreciable cost $enter the depreciation per unit rounded to two decimal places in dollars per unit eTextbook and Media...
Crane Taxi Service uses the units-of-activity method in computing depreciation on its taxicabs. Each cab is expected to be driven 140,000 miles. Taxi 10 cost $28,300 and is expected to have a salvage value of $300. Taxi 10 was driven 28,000 miles in 2021 and 33,600 miles in 2022. Determine the depreciation cost. (Round answer to 2 decimal places, e.g. 1.25.) Depreciable cost $ per unit e Textbook and Media Compute the depreciation for each year. 2021 2022 Depreciation expense...
Blossom Taxi Service uses the units-of-activity method in computing depreciation on its taxicabs. Each cab is expected to be driven 145,000 miles. Taxi 10 cost $29,600 and is expected to have a salvage value of $600. Taxi 10 was driven 27,000 miles in 2021 and 33,700 miles in 2022 Determine the depreciation cost. (Round answer to 2 decimal places, e.g. 1.25.) $ Depreciable cost per unit eTextbook and Media Compute the depreciation for each year. 2021 2022 Depreciation expense tA
Sandhill Taxi Service uses the units-of-activity method in computing depreciation on its taxicabs. Each cab is expected to be driven 141,000 miles. Taxi 10 cost $28,700 and is expected to have a salvage value of $500. Taxi 10 was driven 28,000 miles in 2021 and 30,900 miles in 2022. Determine the depreciation cost. (Round answer to 2 decimal places, e.g. 1.25.) per unit per unit Depreciable cost eTextbook and Media Compute the depreciation for each year. 2021 2022 Depreciation expense...
Cullumber Taxi Service uses the units-of-activity method in computing depreciation on its taxicabs. Each cab is expected to be driven 146,000 miles. Taxi 10 cost $29,500 and is expected to have a salvage value of $300. Taxi 10 was driven 29,000 miles in 2021 and 34,500 miles in 2022. Determine the depreciation cost. (Round answer to 2 decimal places, e.g. 1.25.) per unit Depreciable cost? e Textbook and Media Compute the depreciation for each year. 2021 2022 Depreciation expense $
Wildhorse Taxi Service uses the units-of-activity method in computing depreciation on its taxicabs. Each cab is expected to be driven 144,000 miles. Taxi 10 cost $29,000 and is expected to have a salvage value of $200. Taxi 10 was driven 31,000 miles in 2021 and 33,500 miles in 2022. Determine the depreciation cost. (Round answer to 2 decimal places, e.g. 1.25.) per unit Depreciable costs e Textbook and Media Compute the depreciation for each year. 2021 2022 Depreciation expense $
City Taxi Service purchased a new auto to use as a taxi on January 1, Year 1, for $22,900. In addition, City paid sales tax and title fees of $1,490 for the vehicle. The taxi is expected to have a five-year life and a salvage value of $6,130. 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, Your Ride Inc. paid $26,000 cash to purchase a
taxi cab. The taxi had a 6-year useful life and a $3,500 salvage
value.
required:
a. determine the amount of depreciation expense that would
appear on the year 1 and year 2 income statements.
b. determine the amount of accumulated depreciation that would
appear on the year 1 and year 2 balance sheets.
On January 1, Year 1. Your Ride Inc. paid $26,000 cash to purchase...
Most questions answered within 3 hours.
-
I just took a final for chemistry 2. There were alot of
questions on cell potential....
asked 1 minute from now -
In which region of the country did Methodists and
Baptists have the largest following?
a. The...
asked 53 seconds from now -
A man is standing on a ledge when he throws a ball. The speed of
the...
asked 6 minutes ago -
Facebook Marketing benefit: How is this tool useful for
marketing purposes? Identify and explain at least...
asked 18 minutes ago -
What are the five considerations relevant to the
substantive fairness of a dismissal for permanent incapacity?...
asked 18 minutes ago -
Prince Electronics, a manufacturer of consumer electronic
goods, has five distribution centers in different regions of...
asked 20 minutes ago -
1.) For the following general reaction, rate = k[A]2 and k = 1.3
× 10−2 M−1...
asked 24 minutes ago -
In the Enron documentary(Netflix) What ethical issues did you
observe and who was responsible for them?
asked 24 minutes ago -
Many products fail, some of them spectacularly. Why do you
believe the failure rate for new...
asked 23 minutes ago -
An important news announcement is transmitted by radio waves to
people who are 65 km away,...
asked 43 minutes ago -
On June 30, 2021, Rosetta Granite purchased equipment for
$130,000. The estimated useful life of the...
asked 42 minutes ago -
. If you were the CEO of Agricole, would you pursue an
acquisition target in the...
asked 43 minutes ago