Annual depreciation = (60000-12000)/10 = $4800
Net book value at the end of 2013 = 60000-4800*2 = $50400
Depreciation expense for 2014 = (50400-2000)/4 = $12,100
Question 15 Able Towing Company purchased a tow truck for $60,000 on January 1, 2012. It...
Able Towing Company purchased a tow truck for $60,000 on January 1, 2015. It was originaly depreciated ona straight-line basis over 10 years with an estimated salvage value of $12,000. On December 31, 2017, before adjusting entries had been made, the company decided to change the remaining estimated life to 4 more years as of January 1, 2017, and the salvage value was adjusted to $2,000. How much is depreciation expense for 2017? O M,800 O 6,000 O s15.000 O...
Coronado Towing Company purchased a tow truck for $190000 on January 1, 2016. It was originally depreciated on a straight-line years with an assumed salvage value of $36000. On December 31, 2018, before adjusting entries had been made, the company decided to change the remaining estimated life to 4 years (including 2018) and the salvage value to $4000. What was the depreciation expense for 2018? Sign Up O $18000.
On January 1, 2017, we purchased a truck for $60,000. The truck has a useful life of 5 years and a residual value of $5,000. The truck is depreciated using the straight-line method. What is the book value after the adjusting entry for 2018 (Year 2)? a) $38,000 b) $36,000 c)$33,000 d)$32,000 On January 1, 2017, we purchased a truck for $60,000. The truck has a useful life of 5 years and a residual value of $5,000. The truck is...
Lucky Company purchased a truck at a cost of $12,000 in 2012. As of January 1, 2017, depreciation of $10,000 had been recorded on this asset. Depreciation expense for 2017 is $2,000. After the adjustments are recorded and posted at December 31, 2017, what is the carrying value of the truck? a.$0 b.$5,500 c.$12,000 d.$2,000
E9.7 (LO 2) Linton Company purchased a delivery truck for $34,000 on January 1, 2020. The truck has an expected salvage value of $2,000, and is expected to be driven 100,000 miles over its estimated useful life of 8 years. Actual miles driven were 15,000 in 2020 and 12,000 in 2021. Compute depreciation using different methods. Instructions . Compute depreciation expense for 2020 and 2021 using (1) the straight-line method, (2) the units- of-activity method, and (3) the double-declining-balance method....
Ivanhoe Company purchased a delivery truck for $40,000 on July 1, 2022. The truck has an expected salvage value of $10,000, and is expected to be driven 100,000 miles over its estimated useful life of 8 years. Actual miles driven were 15,000 in 2022 and 12,000 in 2023. Ivanhoe uses the straight-line method of depreciation. Your answer is partially correct. Compute depreciation expense for 2022 and 2023. Depreciation Expense 2022 2023 Straight-line method $ $ 3750 3750
1.We purchased a building with a market value of $150,000 for $125,000 cash. The seller paid $50,000 when they originally purchased the building. What amount is used when we record the purchase of the building? $25,000 $50,000 $125,000 $150,000 2.On July 1, 2017, we purchased a truck for $60,000. The truck has a useful life of 5 years and a residual value of $5,000. The truck is depreciated using the straight-line method. What is the depreciation expense for 2017? $12,000...
Depreciation Handout Excel Company purchased a delivery van on January 1, 2012 for $33,000. Management has estimated that equipment will have a useful life of five years or 100,000 hours. At the end of five years, management believes that equipment will be worth $3,000. The actual miles the van was driven is as follows: 2012 2013 2014 2015 2016 22,000 miles 24,000 miles 15,000 miles 20,000 miles 21,000 miles Straight line Depreciation Cost - Residual Value Years (Depreciable Cost) Year...
On January 1, 2013, Powell Company purchased a building and machinery that have the following useful lives, salvage value, and costs. Building, 25-year estimated useful life, $9,000,000 cost, $900,000 salvage value Machinery, 10-year estimated useful life, $1,200,000 cost, no salvage value The building has been depreciated under the straight-line method through 2017. In 2018, the company decided to switch to the double-declining balance method of depreciation for the building. Powell also decided to change the total useful life of the...
On January 1, 2013, Powell Company purchased a building and equipment that have the following useful lives, salvage value, and costs. Building, 25-year estimated useful life, $4,000,000 cost, $400,000 salvage value Equipment, 15-year estimated useful life, $600,000 cost, no salvage value The building has been depreciated under the straight-line method through 2017. In 2018, Powell decided to change the total useful life of the building to 30 years. The equipment is depreciated using the straight-line method, but in 2018, the...