Years | Units of activity | Depreciation rate | = | Annual depreciation | Accumulated depreciation | Book value | |
2005 | 15,000 | $0.12 | $1,800 | $1,800 | $11,200 | ||
2006 | 30,000 | 0.12 | 3,600 | 5,400 | 7,600 | ||
2007 | 20,000 | 0.12 | 2,400 | 7,800 | 5,200 | ||
2008 | 25,000 | 0.12 | 3,000 | 10,800 | 2,200 | ||
2009 | 10,000 | 0.12 | 1,200 | 12,000 | 1,000 |
Exercise: 4 Cost The following data for a small delivery truck purchased by Barb's Florists on...
Handout 8: Accounting for Plant assets Exercise 1: On March 1, 2008, Penner Company acquired real estate on which it planned to construct a small office building. The company paid $80,000 in cash. An old warehouse on the property was razed at a cost of $8,600; the salvaged materials were sold for $1,700. Additional expenditures before construction began included $1,100 attorney's fee for work concerning the land purchase, $5,000 real estate broker's fee, $7,800 architect's fee. Land price 8,600 Instruction:...
Depreciation Schedules Barb's Florists Name: Units Table $ SI Purchased new truck Jan 1, 2012 Sold Dec 31, 2013 for $7.500 Accounts Expected value Estimated nule in years Estimated useful life in miles 100.000 Extra Credit Complete A, B, C, D 50 7.5 minutes C: Journalize Purchase and DDB Depreciation: Generalural Notestateulations Intreti rmia >> A Prepare the straight line depreciation tabl Straight line Der's Degree Exp Acum JE Purchase for cash: Dale of Purchase Life years Dacation Rate Cost...
Depreciation Schedules Barb's Florists Name: Cost Expected salvage value Estimated useful life in years Estimated useful life in miles $13.000 $1.000 Purchased new truck Jan 1, 2012 Sold Dec 31, 2013 for $7,500 100 Complete A, B, C, D Intro thru SL Depr 8 min >> A. Prepare the straight line depreciation table. Straight-line Year Depr% Deprec Exp Purchase Notes calculations Truck Date of Purchase Accum Book Value Depreciation Rate Cost Salvage Value Depeche Cost 1st year Months Date of...
A small delivery truck was purchased on January 1 at a cost of $25,000. It has an estimated useful life of four years and an estimated salvage value of $5,000. Prepare a depreciation schedule showing the depreciation expense, accumulated depreciation, and book value for each year under the Modified Accelerated cost recovery system but For tax purposes, assume that the truck has a useful life of five years. (The IRS schedule will spread depreciation over six years. Accum. depr. end...
Question One: 30 marks Jefry's Boss purchased a small delivery truck on January 1, 2020. Cost $55,000 Expected residual value $4,000 Estimated useful life in years 5 years Estimated useful life in miles 100,000 miles Instructions: Prepare the deprecation schedule using: 1- Straight line method 2- Double Declining method 1- Straight Line (15 marks) Year Depreciable Cost Annual Expense Book Value Accumulated Depreciation 2020 2021 2022 2023 2024 2- Double Declining Method ( 15 marks) Year Depreciable Cost Annual Expense...
A small delivery truck was purchased on January 1 at a cost of $25,000. It has an estimated useful life of four years and an estimated salvage value of $5,000. Prepare a depreciation schedule showing the depreciation expense, accumulated depreciation, and book value for each year under the sum of years digit method. Accum. depr. end of Yr. 2:$14,000
On January 2, 2018, Reliable Delivery Service purchased a truck at a cost of $65,000. Before placing the truck in service, Reliable spent $2,200 painting it, $1,700 replacing tires, and $10,600 overhauling the engine. The truck should remain in service for five years and have a residual value of $6,000. The truck's annual mileage is expected to be 23,000 miles in each of the first four years and 13,000 miles in the fifth year—105,000 miles in total. In deciding which...
Double-Dedining-Balance Deprediation A small delivery truck was purchased on January 1 at a cost of $25,300. It has an estimated useful Iife of four years and an estimated salvage value of $5,050 prepare a depreciation schedule showing the depreclation expense, accumulated deprediatien, and book value for each year under the double-dedining-balance method. If an amount box does nst require an entry, leave it blank. Small Delivery Truck Depreciation Schedule On January Book Valkue Accumulated Depreciation End of Yea, Book Value...
On January 2, 2018, Quick Delivery Service purchased a truck at a cost of $90,000. Before placing the truck in service, Quick spent $2,200 painting it, $1,700 replacing tires, and $5,100 overhauling the engine. The truck should remain in service for five years and have a residual value of $9,000. The truck's annual mileage is expected to be 21,000 miles in each of the first four years and 16,000 miles in the fifth year—100,000 miles in total. In deciding which...
Double Declining Balance Depreciation A small delivery truck was purchased on January 1 at a cost of $25,000. It has an estimated useful life of four years and an estimated salvage value of $5,000. Prepare a depreciation schedule showing the depreciation expense, accumulated depreciation, and book value for each year under the Double Declining balance method Accum. depr. end of Yr. 2:$18,750