Homework Answers
Answer to Question 2:
Calculation of depreciation expense for 2nd year using straight line method:
Depreciation expense = ( cost - residual value ) / useful life
= ( $ 58,000 - $ 2,000 ) / 8
= $ 7,000.
Under straight line method, Depreciation expense per year is same for over period of useful life.
This, Depreciation for second year is $ 7,000.
Answer to Question 5 : C. $ 14,500,000
Calculation of Depreciation expense for 1st year under uniits of production method:
Depreciation = Depreciable amount * ( actual activity / Estimated activity over period of life)
= ( $58,000,000 - $ 0 ) / ( 75,000,000 / 300,000,000 )
= $ 14,500,000
This Depreciation expense for 1st year will be $ 14,500,000.
Note: Depreciable amount = Cost of asset - Residual value.
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expected the truck to last four years or 102,000 miles, with an
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please help me with these 4 questions... thanks Question 5 Which of the following statements, regarding...
please help me with these 4 questions... thanks
Question 5 Which of the following statements, regarding notes receivable, is incorrect? All notes receivable are considered long-term assets. A notes receivable is a written promise that a customer will pay a fixed amount of principal plus interest by a certain date in the future. Notes receivable are sometimes called promissory notes. Notes receivable usually have longer terms than accounts receivable. « Previous Nes Wov 5 at 12:45pm Instructions Question 11 Which...
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expected the truck to last four years or 102,000 miles, with an
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the second year the truck was driven 47,000 miles. Compute the
depreciation for the second year under each of the methods below
and place your answers in the blanks provided.
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$enter the depreciation for the second year under the
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Double-declining-balance
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