Car.com bought a Toyota for $28,000. The Toyota has a life expectancy of 10 years with a residual value of $3,000. After 3 years, the Toyota was sold for $19,000. What was the difference between the book value and the amount received from selling the car if Car.com used the straight-line method of depreciation? Difference

Car.com bought a Toyota for $28,000. The Toyota has a life expectancy of 10 years with a residual value of $3,000. After 3 years, the Toyota was sold for $19,000. What was the difference between the book value and the amount received from selling the car if Car.com used the straight-line method of depreciation? Difference

Name: Car.com bought a Toyota for $28,000. The Toyota has a life expectancy
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Description: Car.com bought a Toyota for $28,000. The Toyota has a life expectancy of 10 years with a residual value of $3,000. After 3 years, the Toyota was sold for $19,000. What was the difference between the book value and the amount received from selling the

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 8PA: Referring to PA7 where Kenzie Company purchased a 3-D printer for $450,000, consider how the...

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Alfredo Company purchased a new 3-D printer for $900,000. Although this printer is expected to last for ten years, Alfredo knows the technology will become old quickly, and so they plan to replace this printer in three years. At that point, Alfredo believes it will be able to sell the printer for $15,000. Calculate yearly depreciation using the double-declining-balance method.
Montezuma Inc. purchases a delivery truck for $20,000. The truck has a salvage value of $8,000 and is expected to be driven for ten years. Montezuma uses the straight-line depreciation method. Calculate the annual depreciation expense. After five years of recording depreciation, Montezuma determines that the delivery truck will be useful for another five years (ten years in total, as originally expected) and that the salvage value will increase to $10,000. Determine the depreciation expense for the final five years of the assets life, and create the journal entry for years 6â€“10 (the entry will be the same for each of the five years).
Montezuma Inc. purchases a delivery truck for $15,000. The truck has a salvage value of $3,000 and is expected to be driven for eight years. Montezuma uses the straight-line depreciation method. Calculate the annual depreciation expense. After three years of recording depreciation, Montezuma determines that the delivery truck will only be useful for another three years and that the salvage value will increase to $4,000. Determine the depreciation expense for the final three years of the assets life, and create the journal entry for year four.
Montello Inc. purchases a delivery truck for $25,000. The truck has a salvage value of $6,000 and is expected to be driven for ten years. Montello uses the straight-line depreciation method. Calculate the annual depreciation expense.
Referring to PA7 where Kenzie Company purchased a 3-D printer for $450,000, consider how the purchase of the printer impacts not only depreciation expense each year but also the assets book value. What amount will be recorded as depreciation expense each year, and what will the book value be at the end of each year after depreciation is recorded?
Montello Inc. purchases a delivery truck for $25,000. The truck has a salvage value of $6,000 and is expected to be driven for 125,000 miles. Montello uses the units-of-production depreciation method, and in year one the company expects the truck to be driven for 26,000 miles; in year two, 30,000 miles; and in year three, 40,000 miles. Consider how the purchase of the truck will impact Montellos depreciation expense each year and what the trucks book value will be each year after depreciation expense is recorded.
Montello Inc. purchases a delivery truck for $25,000. The truck has a salvage value of $6,000 and is expected to be driven for 125,000 miles. Montello uses the units-of-production depreciation method, and in year one it expects to use the truck for 26,000 miles. Calculate the annual depreciation expense.
John Morse Corporation buys a van for $16,000. The estimated life of the van is four years. The residual value of the van is $4,000. After two years, the van is sold for $8,000. What was the difference between the book value and the amount received from selling the van if John used the straight-line method of depreciation?
Young Corporation bought a car with an estimated life of five years for $25,000. The residual value of the car is $5,000. After three years, the car was sold for $11,000. What was the difference between book value and selling price if Young used the straight-line method of depreciation? (format as $1,234.56, if there are zero cents format as $1,234.00)
Larry's car is worth $18,000 after 5 years. When the car was new, it sold for $24,000. What is the depreciation rate?
A surveillance equipment bought by FabLab Mindanao 2 years ago has been book-depreciated by the straight-line method using a 5-year useful life. If the book value at the end of year 2 is ₱240,000 and the company assumed that the equipment would be worthless at the end of its 5-year useful life, a) What is the book depreciation charge each year? b) What was the first cost of the equipment?
Mazaya company has decided to sell one of its old machines on June 30, 2011. The machine was purchased for $120,000 on January 1, 2007, and was depreciated on a straight-line basis for 10 years with no residual value. If the machine was sold for $33,000, what was the amount of the gain or loss recorded at the time of the sale?