ZuoTi.Pro
Question

On July 1, 20X1, ZipCo, which uses UOP depreciation, purchases for $36,000 a truck with an estimated useful life of 60,000 miles and a residual value of $6,000. Miles driven are as follows: Year 20x1 20X2 20x3 20x4 20x5 Miles 5,000 10,000 20,000 25,000 30,000 The book value of the truck on December 31, 20X3 is: Your company uses the DDB method. Assets purchased between the 1st and 15th are depreciated for the entire month; assets purchased after the 15th as though they were acquired the following month. On May 1, 20X1, it purchases for $250,000 a machine with a useful life of 12 years and a salvage value of $10,000. What is the machines book value at the end of 20X2? Your company uses the DDB method. Assets purchased between the 1* and 15h are depreciated for the entire month; assets purchased after the 15th as though they were acquired the following month. On July 1, 20X1, it purchases for $200,000 machine with a useful life of 10 years and a salvage value of $20,000. What is 20X2 depreciation expense Your company uses the DDB method. Assets purchased between the 1s and 15th are depreciated for the entire month; assets purchased a month. On April 6, 20X1, your firm purchases for $250,000 a machine that management will last 15 years and have a salvage value of $10,000. What is 20X1 depreciation expense? fter the 15th a s though they were acquired the following On November 17,20X1, your company purchases a building for $500,000. Your company uses the DDB method. Assets purchased between the 1s and 15th are depreciated for the entire month;
business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Question e is incomplete

Answer to first 4 sub parts is as below

Answer a Units of usage method Units of activity depreciation-The assets cost is then allocated to the accounting periods based on the plant assets usage, units produced, activity, etc Total estimated usage Cost Salvage Value Depreciable amount 60,000 miles 36,000 6,000 30,000 Z-X-Y Depreciation per Unit 50 per mile Depreciation (not impacted by no of Accumulated Rate Year Actual Miles Depreciation Carrying Value 2,500 $ 5,000 0.50 0.50 0.50 0.50 0.50 5,000 10,000 20,000 25,000 30,000 90,000 2,500 S 7,500 10,000 $ 17,500 30,000 33,500 28,500 18,500 6,000 4 12,500 30,000 Depreciation stops when carrying value is equal to salvage value i.e at the end of 4th year The book value of the truck as at 31 Dec 20X3 18,500Answer b Double-declining balance Straight-line depreciation rate-(100% divided by 12 years Double the straight-line rate is This rate is applied to the book value of the asset at the beginning of each year. (Book value is cost minus accumulated depreciation Cost of Machine Salvage Value Depreciable amount 250,000 10,000 240,000 Accumulated Depreciation Book Value De $ 250,000 Salvage value is ignored 41,667 34,722 28,935$ 24,113 $ 20,094$ 16,745 13,954 $ 11,628 41,667 208,333 76,389 173,611 105,324 144,676 129,437 120,563 149,531 100,469 166,276 83,724 180,230 69,770 191,858$ 201,548 48,452 209,624 40,376 216,353 3 240,000$ 6 58,142 9 8,075S 12 23,647 10,000 Accumulated Depreciation Book Value Date of Purchase 1 Ma 27,778$ 20x1 20x2 20x3 20x4 20x5 20x6 20x7 20x8 20x9 20x10 20x11 20x12 20x13 8 months Depreciation 4 months +8 months 4 months +8 months 4 months +8 months 4 months +8 months 4 months +8 months 4 months +8 months 4 months +8 months 4 months +8 months 4 months +8 months 4 months +8 months 4 months +8 months 27,778 37,037 30,864 25,720 21,433 17,861 14,884 12,404 10,336 8,614 7,178 18,008 222,222 64,815 185,185 95,679 154,321 121,399 128,601 142,833 107,167 160,694 89,306 74,422 187,982 62,018 51,682 206,932 43,068 35,890 17,882 10,000 175,578$ 198,318 51 214,110 $ 232,118$ 240,000$ 240,000 Answer Book Value at end of 20x2 185,185 From above tableAnswer c Double-declining balance Straight-line depreciation rate-(100% divided by 10 years Double the straight-line rate is 10.00% 20.00% This rate is applied to the book value of the asset at the beginning of each year. (Book value is cost minus accumulated depreciation Cost of Machine Salvage Value Depreciable amount 200,000 20,000 180,000 Accumulated Depreciation Book Value Year Depreciation $ 200,000 Salvage value is ignored 40,000 S 32,000 25,600 $ 20,480$ 16,384$ 13,107 $ 10,486 $ 8,389 $ 40,000 160,000 72,000 128,000 102,400 118,080 81,920 134,464 65,536 52,429 158,057 41,943 33,554 26,844 20,000 6 147,571$ 6,711 $ 6,844 166,446$ 173,156 180,000$ 9 Accumulated Depreciation Book Value Date of Purchase 1 Jul 6 months Depreciation 20,000 180,000 20x1 20x2 20x3 20x4 20x5 20x6 20x7 20x8 20x9 20x10 20x11 6 months +6 months 6 months +6 months 6 months +6 months 6 months +6 months 6 months +6 months 6 months +6 months 6 months +6 months 6 months +6 months 6 months +6 months 6 months 20,000 36,000 28,800 23,040 18,432 14,746 11,796 9,437 56,000 144,000 84,800 115,200 107,840 92,160 126,272$ 141,018$ 152,814 47,186 162,251 169,801$ 176,578$ 180,000$ 73,728 58,982 6,777 3,422 180,000 30,199 23,422 20,000 Answer Depreciation for year 20x2- 36,000 From above tableAnswer d Double-declining balance Straight-line depreciation rate-(100% divided by 15 years Double the straight-line rate is This rate is applied to the book value of the asset at the beginning of each year. (Book value is cost minus accumulated depreciation Cost of Machine Salvage Value Depreciable amount 250,000 10,000 240,000 Accumulated Depreciation Book Value De $ 250,000 Salvage value is ignored 33,333 28,889 25,037 33,333 216,667 62,222 187,778 87,259 162,741 108,958 141,042 127,764$ 144,062 158,187 91,813 170,429 $ 79,571 181,038 $ 190,233$ 198,202$ 205,108 $ 211,094$ 216,281$ 240,000$ 16,298 14,125 6 105,938 10,610 9,195 $ 68,962 59,767 9 44,892 38,906 33,719 10,000 12 5,187 $ 23,719 $ Accumulated Depreciation Book Value Date of Purchase 6th April 9 months Depreciation 3 months +9 months 3 months +9 months 3 months +9 months 3 months +9 months 3 months +9 months 3 months +9 months 3 months +9 months 3 months +9 months 3 months +9 months 3 months +9 months 3 months +9 months 3 months +9 months 3 months +9 months 3 months +9 months 25,000 225,000 55,000 195,000 81,000 169,000 103,533 146,467 126,938 139,987 110,013 154,656 95,344 82,632 178,386 71,614 187,934 62,066 25,000 30,000 20x2 22,533 19,529 16,925 20x4 123,062 20x6 20x7 20x8 20x9 20x10 20x11 20x12 20x13 20x14 20x15 20x16 12,713 167,368 8,275 196,210 53 203,382 46,618 209,598 40,402 35,015 15,929 10,000 6,216 214,985 $ 234,071 $ 240,000$ 240,000 Answer Depreciation for year 20x1- 25,000 From above table

0 0
Add a comment
Know the answer?
Add Answer to:
On July 1, 20X1, ZipCo, which uses UOP depreciation, purchases for $36,000 a truck with an...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • o d curendar year unless otherwise statet 1. Your company uses the DDB method. Assets purchased...

    o d curendar year unless otherwise statet 1. Your company uses the DDB method. Assets purchased betweeththey were depreciated for the entire month; assets purchased after the 15m as acquired the ollowing month. On May 1,20X1, it purchases for s253 with a useful life of 12 years and a salvage value of $10,000. book value at the end of 20X2? 1st and 15th are though they were he machine's $250,000 a machi What is the machine's ne a. $173,611 b....

  • Your company uses the DDB method. Assets purchased between the 1st and 15th are depreciated for...

    Your company uses the DDB method. Assets purchased between the 1st and 15th are depreciated for the entire month; assets purchased after the 15th as though they were acquired the following month. On January 12, 20X1, your company purchases for $200,000 a machine that management estimates will last 10 years and have a salvage value of $50,000. What is 20X2 depreciation expense? a. $32,000 b. $40,000 c. $30,000 d. $24,000 On January 22, 20X1, your company purchases a machine for...

  • On July 1, 20X1, your company, which uses the straight-line method, purchases 3 machines, as follows:...

    On July 1, 20X1, your company, which uses the straight-line method, purchases 3 machines, as follows:         Cost Salvage Value Useful Life Machine #1    $80,000      $14,000      12 years   Machine #2    $55,000      $10,000      8 years   Machine #3    $27,000      $3,000      5 years   Assets purchased between the 1st and 15th of the month are depreciated for the entire month; assets purchased after the 15th of the month are treated as though they were acquired...

  • tering Depreciation On May 1, 20X1, your company purchases for $260,000 a machine with an estimated...

    tering Depreciation On May 1, 20X1, your company purchases for $260,000 a machine with an estimated useful life of 12 years and a salvage value of $10,000. Your company uses SYD depreciation and depreciates assets purchased between the 1st and 15th of the month for the entire month and assets purchased after the 15th as though they were acquired the following month. What is 20X2 depreciation expense? a. $38,462 b. $38,256 c. $36,325 d. $35,256

  • tering Depreciation 6 On May 1, 20X1, your company purchases for $260,000 a machine with an...

    tering Depreciation 6 On May 1, 20X1, your company purchases for $260,000 a machine with an estimated useful life of 12 years and a salvage value of $10,000 Your company uses SYD depreciation and depreciates assets purchased between the 1 and 15h of the month for the entire month and assets purchased after the 15 as though they were acquired the following month. What is 20X2 depreciation expense? a. $38,462 b. $38256 $36,325 d. $35,256

  • tering Depreciation On July 1, 20X1, ZipCo, which uses UOP depreciation, purchases for with an estimated...

    tering Depreciation On July 1, 20X1, ZipCo, which uses UOP depreciation, purchases for with an estimated useful life of 60,000 miles and a residual value of $6,000.Miles driven are as follows: Year 20x1 20X2 20X3 20x4 20x5 Miles 5,000 10,000 20,000 25,000 30,000 The book value of the truck on December 31, 20X3 is: a. $18,500 b. $26,000 c. $12,500 d. $33,500

  • ACC 160 ASA COLLEGE PROF. K. JEFFERS 36. On January 1, 20X1, your company, which uses...

    ACC 160 ASA COLLEGE PROF. K. JEFFERS 36. On January 1, 20X1, your company, which uses the straight-line method, purchases 3 machines, recorded as follows" Cost $ 6,000 6,000 11,000 Salvage Value $1,000 1,000 1,000 Useful Life Machine No. 1 Machine No. 2 Machine No. 3 5 years 10 years 10 years What is total 20X1 depreciation for the 3 machines? $2,500 b. $2,900 a. $1,250 c. d. $5,000 37. DepCo uses the straight-line method. Assets purchased between the 1"...

  • d. $24,000 r the entire month; assets purchased after the 15th as thougaa salvage month. Management...

    d. $24,000 r the entire month; assets purchased after the 15th as thougaa salvage month. Management estimates the machine will last 10 years and of $60,000. What is 20X1 depreciation expense? uses 150% DB , zoxī, your company purchasesamaeenthe 1st and dred the ton machine for $200,000. Your company ciated valu depreciation. Assets purchased between the Tas ani the oalue $21,000 b $27,500 c. $19,250 d. $25,667 On July 8, 20x1, pur DDB method. Assets purchased between the 1st and...

  • stering Depreciation On July 1, 20X1, ZipCo, which uses UOP depreciation, purchases for so6000. Miles with...

    stering Depreciation On July 1, 20X1, ZipCo, which uses UOP depreciation, purchases for so6000. Miles with an estimated useful life of 60,000 miles and a residua driven are as follows: $36,000 a truck l value of Year 20X1 20x2 20X3 20x4 20X5 Miles 5,000 10,000 20,000 25,000 30,000 The book value of the truck on December 31, 20X3 is: a. $18,500 b. $26,000 c. $12,500 d. $33,500

  • ooERDIGTs (SYD) METHOD OF DEPRECIAO Assume all companies are on a calendar year unless otherwise stated...

    ooERDIGTs (SYD) METHOD OF DEPRECIAO Assume all companies are on a calendar year unless otherwise stated On January 1, 20X1, your company purchases for $550,000 a machine with an estimated useful life of 10 years and a salvage value of $50,000. Using SYD depreciation, the 20X2 depreciation expense is: a. $81,818 b. $90,000 c. $18,182 d. $200,000 On January 1, 20X1, your company purchases for $450,000 a machine with an estimated useful What is 20X4 depreciation expense? 2. life of...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT