Depreciation = (Cost - Salvage value) /Useful life
2018
= (86,400 - 8,040)/4 years * 8/12
= 13,060
2019
= (86,400 - 8,040)/4
= 19,590
Blossom Ltd. purchased a delivery truck on May 1, 2018, at a cost of $86,400. The...
Question 4 Pharoah Ltd. purchased a delivery truck on May 1, 2018, at a cost of $81,720. The truck is expected to have a residual value of $8,080 at the end of its 4-year useful life. Pharoah has a December 31 year end. Calculate the depreciation expense using the diminishing-balance method for 2018 and 2019. Assume the depreciation rate is equal to one time the straight-line rate. (Round answers to 0 decimal places, e.g. 5,275.) Depreciation expense 2018 13620 2019
Brief Exercise 9-6 a-b Crane Ltd. purchased a delivery truck on January 1, 2018, at a cost of $74,400. The truck is expected to have a residual value of $8,160 at the end of its 4-year useful life. Crane has a December 31 year end. Use the diminishing-balance method and assume the depreciation rate is equal to double the straight-line rate. Calculate the depreciation for each year of the truck's life. (Round answers to 0 decimal places, e.g. 5,275.) Depreciation...
Brief Exercise 9-6 a-b Cullumber Ltd. purchased a delivery truck on January 1, 2018, at a cost of $77,120. The truck is expected to have a residual value of $8,210 at the end of its 4-year useful life. Cullumber has a December 31 year end. Use the diminishing-balance method and assume the depreciation rate is equal to double the straight-line rate. x Your answer is incorrect. Try again. Calculate the depreciation for each year of the truck's life. (Round answers...
Stacey Ltd purchased a new machine on 1 September 2019 at a cost of $227,800 (excluding GST). The entity estimated that the machine has a residual value of $30,400 (excluding GST). The machine is expected to be used for 42,000 working hours during its 10 year life. Assume a 31 December year-end. Required (a) Calculate the depreciation expense using the straight-line method for 2019 and 2020. (b) Calculate the depreciation expense using the diminishing-balance method and a depreciation rate of...
*Problem 9-4A a-b (Part Level Submission) Blossom Company purchased equipment on March 27, 2018, at a cost of $272,000. Management is contemplating the merits of using the diminishing-balance or units-of-production method of depreciation instead of the straight- line method, which it currently uses for other equipment. The new equipment has an estimated residual value of $8,000 and an estimated useful life of either four years or 80,000 units. Demand for the products produced by the equipment is sporadic so the...
Cambridge Company purchased a truck on January 1, 2018. Cambridge paid $24,000 for the truck. The truck is expected to have a $4,000 residual value and a 7-year life. Cambridge has a December 31 fiscal year end. Using the straight-line method, how much is the 2019 depreciation expense?
Norman Delivery Company purchased a new delivery truck for $72,000 on April 1, 2019. The truck is expected to have a service life of 5 years or 90,000 miles and a residual value of $3,000. The truck was driven 8,000 miles in 2019 and 18,000 miles in 2020. Norman computes depreciation expense to the nearest whole month. Required: Compute depreciation expense for 2019 and 2020 using the following methods: (Round your answers to the nearest dollar.) Straight-line method 2019 $...
Bar Delivery Company purchased a new delivery truck for $65,400 on April 1, 2019. The truck is expected to have a service life of 5 years or 170,400 miles and a residual value of $3,120. The truck was driven 9,500 miles in 2019 and 11,900 miles in 2020. Bar computes depreciation expense to the nearest whole month. Required: Compute depreciation expense for 2019 and 2020 using the following methods: (Round your answers to the nearest dollar.) Straight-line method 2019 $...
Assignment > Open Assignment | FULL SCREEN PRINTER VERSION BACK NEXT Carla Vista Ltd. purchased a delivery truck on January 1, 2018, at a cost of $87,440. The truck is expected to have a residual value of $7,240 at the end of its 4-year useful life. Carla Vista has a December 31 year end. Use the diminishing-balance method and assume the depreciation rate is equal to double the straight-line rate. ASSIGNMENT RESOURCES 20211 Chapter 9 Part I Quiz (Quiz 2)...
On March 31, 2018, Marble Trucking purchased a used Kenworth truck at a cost of $55,000. Marble Trucking expects to drive the truck for nine years and to have a residual value of $10,000. Compute Marble Trucking's depreciation expense on the truck for year 1 using the straight-line method. Start by determining the formula needed to calculate straight-line depreciation on the truck through December 31, 2018. = Straight-line depreciation Book value x [(1/ Useful life in miles) x 2] (Months...