9.44: Matthew's Delivery Service, whose fiscal year ends on June 30, purchased a vehicle for $26,000 on September 15, 2020. The vehicle's estimated useful life was seven years, and it was expected to be driven 125,000 miles (17,900 miles in 2020 and 17,850 for each of the next six years). Matthew's Delivery estimated the salvage value at $2,800. Using the units-of-activity method, what amount of depreciation expense should Matthew's Delivery record in year 5? (Round the final answer to the nearest dollar; do not round intermediary calculations.) A $3,313 $2,943 $1,457 D $3,713 Study t · Apply d plant ass
9.44: Matthew's Delivery Service, whose fiscal year ends on June 30, purchased a vehicle for $26,000 on September 15, 2020. The vehicle's estimated useful life was seven years, and it was expected to be driven 125,000 miles (17,900 miles in 2020 and 17,850 for each of the next six years). Matthew's Delivery estimated the salvage value at $2,800. Using the units-of-activity method, what amount of depreciation expense should Matthew's Delivery record in year 5? (Round the final answer to the nearest dollar; do not round intermediary calculations.) A $3,313 $2,943 $1,457 D $3,713 Study t · Apply d plant ass
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter7: Operating Assets
Section: Chapter Questions
Problem 53E: Revision of Depreciation On January 1, 2017, Blizzards-R-Us purchased a snow-blowing machine for...
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Depreciation Methods
The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.
Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
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