Homework Answers
Accumulated depreciation expense = Cost - salvage value
= $20,000 - $2,000
= $18,000
Depreciation expense (2018) = (Miles during 2018 / Total miles driven) * Accumulated Depreciation
= (10,000 / 100,000) * $18,000
= $1,800
Book value at the end of year 2018 = Cost - Depreciation
= $18,000 - $1,800
= $16,200
Depreciation expense (2019) = (Miles during 2019/ Total miles driven) * Accumulated Depreciation
= (1,800 / 100,000) * $18,000
= $3,240
Book value at the end of year 2019 = $16,200 - $3,240
= $12,760
$12,760 is the correct answer.
Add Answer to:
54. On January 1, 2018, Conway Company purchased a delivery vehicle costing $20,000. The vehicle has...
On January 1, 2018, the Excel Delivery Company purchased a delivery van for $33,000. At the...
On January 1, 2018, the Excel Delivery Company purchased a
delivery van for $33,000. At the end of its five-year service life,
it is estimated that the van will be worth $3,000. During the
five-year period, the company expects to drive the van 100,000
miles.
On January 1, 2018, the Excel Delivery Company purchased a delivery van for $33,000. At the end of its five-year service life, it estimated that the van will be worth $3,000. During the five-year period,...
Wakefield Industries purchased a delivery vehicle on January 1, 2019, for $30,000. They paid sales taxes...
Wakefield Industries purchased a delivery vehicle on January 1, 2019, for $30,000. They paid sales taxes of $2,000 and one year’s insurance premium of $2,000 on the same day. The company estimated a residual value of $3,000 at the end of the 5-year expected service life. Expected usage (in miles) of the new delivery vehicle 2019 16,000 2020 22,000 2021 25,000 2022 21,000 2023 16,000 Mileage estimates were based on expected increases in customers and the addition of a second...
Wakefield Industries purchased a delivery vehicle on January 1, 2019, for $30,000. They paid sales taxes...
Wakefield Industries purchased a delivery vehicle on January 1, 2019, for $30,000. They paid sales taxes of $2,000 and one year’s insurance premium of $2,000 on the same day. The company estimated a residual value of $3,000 at the end of the 5 year expected service life. Expected usage (in miles) of the new delivery vehicle 2019 16,000 2020 22,000 2021 25,000 2022 21,000 2023 16,000 Mileage estimates were based on expected increases in customers and the addition of a...
On January 1, 2018, the Excel Delivery Company purchased a delivery van for $57,000. At the...
On January 1, 2018, the Excel Delivery Company purchased a delivery van for $57,000. At the end of its five-year service life, it is estimated that the van will be worth $5,400. During the five-year period, the company expects to drive the van 172,000 miles. Required: Calculate annual depreciation for the five-year life of the van using each of the following methods. 1. Straight line. 2. Sum-of-the-years'-digits. 3. Double-declining balance. 4. Units of production using miles driven as a measure...
Depreciation Handout Excel Company purchased a delivery van on January 1, 2012 for $33,000. Management has...
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...
Exercise 11-1 Depreciation methods [LO11-2] On January 1, 2018, the Excel Delivery Company purchased a delivery...
Exercise 11-1 Depreciation methods [LO11-2] On January 1, 2018, the Excel Delivery Company purchased a delivery van for $75,000. At the end of its five-year service life, it is estimated that the van will be worth $7,800. During the five-year period, the company expects to drive the van 224,000 miles. Required: Calculate annual depreciation for the five-year life of the van using each of the following methods. 1. Straight line. 2. Sum-of-the-years’-digits. 3. Double-declining balance. 4. Units of production using...
Roswell Company has the following information on one of its vehicles purchased on January 1,
Roswell Company has the following information on one of its vehicles purchased on January 1, Year 1: Vehicle cost $50,000 Useful life, years, estimated 5Useful life, miles, estimated 100.000 Salvage value, estimated $10,000 Actual miles driven: Year 1 30,000 Year 2 20,000 Year 3 15,000 Year 4 25,000 Year 5 12.000 No estimates were changed during the life of the asset. The Year 3 depreciation expense for Roswell's vehicle using the sum-of-the-years'-digits (SYD) method was A. $6,000 B. $8,000 C. $10,000 D. $16,000 Using the activity method, what was Roswell's Year 5 depreciation...
Storm Delivery Company purchased a new delivery truck for $72,000 on April 1, 2019. The truck...
Storm 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 120,000 miles and a residual value of $3,000. The truck was driven 12,000 miles in 2019 and 18,000 miles in 2020. Storm computes depreciation expense to the nearest whole month.
Question 1 Cobalt Manufacturing purchased equipment and a delivery vehicle on January 1, 2019. The equipment...
Question 1 Cobalt Manufacturing purchased equipment and a delivery vehicle on January 1, 2019. The equipment cost $65,000 and has an estimated useful life of 8 years with a residual value of $9,000 The delivery vehicle cost $150,000 and has an estimated life of 4 years or 200,000 kilometres and a residual value of $14,000. The delivery truck is expected to be driven 35,000 and 40,000 kilometres in 2019 and 2020, respectively. Required 1. Cobalt has decided to depreciate the...
On January 1, 2018, Mr. Brightside Company purchased machinery costing $146,000 and incurred $5,000 in installation...
On January 1, 2018, Mr. Brightside Company purchased machinery costing $146,000 and incurred $5,000 in installation costs. The machinery has an estimated useful life of 15 years and a residual value of $10,000. The company uses the straight-line method of depreciation. At the end of 2019, Mr. Brightside recorded depreciation and assessed the asset, determining a recoverable amount of $122,000. Mr. Brightside sold the equipment to When You Were Young Corporation on June 30, 2020, for $120,000. Prepare the necessary...
On January 1, 2018, the Excel Delivery Company purchased a
delivery van for $33,000. At the end of its five-year service life,
it is estimated that the van will be worth $3,000. During the
five-year period, the company expects to drive the van 100,000
miles.
On January 1, 2018, the Excel Delivery Company purchased a delivery van for $33,000. At the end of its five-year service life, it estimated that the van will be worth $3,000. During the five-year period,...
On January 1, 2018, the Excel Delivery Company purchased a delivery van for $57,000. At the end of its five-year service life, it is estimated that the van will be worth $5,400. During the five-year period, the company expects to drive the van 172,000 miles. Required: Calculate annual depreciation for the five-year life of the van using each of the following methods. 1. Straight line. 2. Sum-of-the-years'-digits. 3. Double-declining balance. 4. Units of production using miles driven as a measure...
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...
Question 1 Cobalt Manufacturing purchased equipment and a delivery vehicle on January 1, 2019. The equipment cost $65,000 and has an estimated useful life of 8 years with a residual value of $9,000 The delivery vehicle cost $150,000 and has an estimated life of 4 years or 200,000 kilometres and a residual value of $14,000. The delivery truck is expected to be driven 35,000 and 40,000 kilometres in 2019 and 2020, respectively. Required 1. Cobalt has decided to depreciate the...
On January 1, 2018, Mr. Brightside Company purchased machinery costing $146,000 and incurred $5,000 in installation costs. The machinery has an estimated useful life of 15 years and a residual value of $10,000. The company uses the straight-line method of depreciation. At the end of 2019, Mr. Brightside recorded depreciation and assessed the asset, determining a recoverable amount of $122,000. Mr. Brightside sold the equipment to When You Were Young Corporation on June 30, 2020, for $120,000. Prepare the necessary...
Most questions answered within 3 hours.
-
What are some of the examples of the gender "double
standard" in terms of views of...
asked 5 minutes ago -
Name and describe what you believe to be the seven most
significant mistakes that can be...
asked 12 minutes ago -
Given C2H6 (g) ---> 3H2 DeltaH: 84.7 KJ
Give the enthalpy for 4x reverse reaction and...
asked 13 minutes ago -
Why is the charge of an anion reduced by one unit by adding a
hydrogen to...
asked 24 minutes ago -
imagine that you are one of the following firms entering the
respective market (pick only one)...
asked 17 minutes ago -
Economic sanctions
a.usually work to create policy change in the targeted
country.
b.are more likely to...
asked 18 minutes ago -
A survey of 500 randomly chosen adults found that
20% of the 300 men and 15%...
asked 42 minutes ago -
Don Tumelson lived and worked in Arizona until April 21, 2017.
At the beginning of April,...
asked 42 minutes ago -
Network devices need software to make them operate. We commonly
associate this with either Windows or...
asked 34 minutes ago -
A disc as moment of inertia 4 kg · m² and a radius of 1.43 m...
asked 48 minutes ago -
a) Light reflects from the front and back surfaces of a bubble.
Assume the bubble is...
asked 48 minutes ago -
Find and interpret a 95% confidence interval
based on the following:
65 out of 83 sampled...
asked 1 hour ago