ANSWER AND SHOW WORK IN EXCELATTACHED IS QUESTION 9s. 4 A trucking company computes depreciation on its vehicles by a mileage basis. Suppose a delivery truck has a cost of $20,000, a salvage value of $2,000, and an estimateduseful life of 200,000 miles. Determine the depreciation rate per mile.a. $0.08b. $0.09c. $0.10d. $0.11

Cost of delivery truck = $20000 Salvage value = $2000 Estimated useful life = 200000 miles

Answered: depreciation rate per mile

Business

Accounting

depreciation rate per mile

Corporate Financial Accounting

14th Edition

ISBN:9781305653535

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter9: Long-term Assets: Fixed And Intangible

Section: Chapter Questions

Problem 9.2BE: Units-of-activity depreciation A truck acquired at a cost of 69,000 has an estimated residual value...

See similar textbooks

Related questions

Q: Units-of-activity Depreciation A truck acquired at a cost of $425,000 has an estimated residual…

A: (a) Depreciable cost = Cost - salvage value = 425,000 - 21,800 = $403,200 (b) Depreciation rate per…

Q: which metric is used as the profitability metric and explain what it evaluate?

A: Profitability Matric is somewhere helps to analyse the financial performance and financial position…

Q: Which of the following costs are reported on a company’s income statement andbalance sheet?Income…

A: An Income Statement of a company shows the company's Revenue and Expenses during a particular…

Q: he Modified Accelerated Cost Recovery System is used to: Da. ascertain break-even point. Ob. compute…

A: Modiy Accelerated Cost Recovery system (MACRS) is the combination of Straight line and Double…

Q: B) In term of depreciation, give summery notification about each method within graphical examples?

A: In accounting, depreciation refers to spreading a tangible asset's cost over its useful life.…

Q: Compute depreciation under units-of-activity method. structions a. Compute the depreciable cost per…

A: Depreciation means fall in the value of tangible fixed assets because of its usage or with efflux of…

Q: (a) Compute the straight-line depreciation schedule. (b) Compute the unit-of-production depreciation…

A: Depreciation could be computed under the straight-line method or unit-of-production method. Under…

Q: Which one of the following accounts is an asset similar to work-in-process inventory? Group of…

A: An asset refers to the resource of the business that can be utilized for the purpose of revenue…

Q: In 150 words or fewer, explain the different methods that can be used to calculate depreciation.…

A: The decrease in the value of the fixed assets of a company is called depreciation. It occurs due to…

Q: Accumulated Depreciation a.is the same as Depreciation Expense b.is used to show the amount of cost…

A: Whenever fixed assets are purchased in business, then their value decreases over life of the asset.…

Q: Depreciationa. is calculated by the department that uses the fixed asset.b. allocates the cost of…

A: Definition: Fixed Assets: It refers to the long-term assets having a useful life of more than a year…

Q: Question When computing depreciation expence of PPE bo toutle-decing e anoe depreciaion method…

A: The question is related to Depreciation Accounting. In Straightline Method fixed depreciation is…

Q: There are many terminologies used to describe the process of distributing the cost of an item over…

A: The Answer

Q: Calculate the annual depreciation

A: Purchase cost of machine = $850,000 Productive life = 7 years Salvage value = $150,000 Depreciable…

Q: Name the depreciation method that is the most appropriate for assets where a metric can be used to…

A: Unit-of-output depreciation method: It provides the fixed amount of depreciation for each unit of…

Q: Determine the depreciation base of Bonita's new machine. Bonita uses straight-line depreciation.

A: Depreciation: Depreciation refers to the reduction in the monetary value of a fixed asset due to…

Q: When natural resources are used, the expense account is increased for a portion of the cost of…

A: Depletion expense is a reduction in the value of assets due to the usage of that asset. We can…

Q: Detailed Explanation needed. Advantages and Disadvantages of methods of depreciation ( Straight…

A: The efficiency of the assets will reduce over the period. To record this reduction in the…

Q: Determine the amount of depreciation expense for Year 1 and Year 2 using each of the following…

A: Depreciation :— it means Decrease in the Value of Fixed Assets due to their use of Assets.…

Q: The three factors in cost allocation of a depreciable asset are service life, allocation base, and…

A: Cost accounting system: Cost accounting system of an organization consists of procedures and…

Q: What is depreciation? Define useful life, residual value, and depreciable cost.

A: Depreciation is a method of allocation of cost of a fixed asset over its useful life. The value of…

Q: Contrast the straight-line method and the units-of-activity method as to (a) Useful life, and…

A: Hello. Since your question has multiple parts, we will solve first question for you. If you want…

Q: Explain the 3 different methods of accounting for Depreciation. (Straight Line, Double Declining…

A: Definition: Straight-line depreciation is a method of allocating costs to fixed assets equally…

Q: How to determine the percentage by which operating income can increase if the entire R&D expenditure…

A: Operating income is income of business from its normal operations Percentage Change = (New Value -…

Q: Depreciation can be defined as the measure of cost or revalued amount of economic benefits of a…

A: Depreciation can also be defined as: It records the usage of a fixed asset over a period of time and…

Q: what foctor must be persent to use the units-production methood of depreciation

Q: Depreciation of an asset based on the number of hours of usage is a(n): a. Time-based method b.…

A: Depreciation is a non cash expenses which is charged for reduction in value of asset over the useful…

Q: Estimate the average total estimated useful life of depreciable property, plant, and equipment. Does…

A: Plant, property and Equipment refers to the tangible asset of the firm. Any tangible asset have a…

Q: Which of the following is not a factor in computing depreciation for a period? present value…

A: SOLUTION- Present value is not a factor for calculating depreciation.

Q: Depletion of a natural resource us typically recorded as a. Debit to an invenrory account b.…

A: journal entry for depletion expense is - depletion expense account debit </p><p>…

Q: What is book value (or net book value) of plant and equipment and on which financial statement is it…

A: Book value means the value at which it is shown in financial statements.

Q: Which of the following is considered capital expenditure Select one: a. Research expenses. b.…

A: Capital expenditure means those expenditure which are to be capitalized in books of accounts i.e.…

Q: For the composite method, the composite a. rate is the total cost divided by the total annual…

A: Depreciable cost is used to compute the depreciation, and it is calculated by subtracting its value…

Q: Depreciation of an asset based on the number of hours of usage is a(n) O accelerated method…

A: If an asset is depreciated on the basis of the number of hours used, it will be said that the…

Q: original cost of old equip ced depreciation on old equip intenance costs of old eguin

A: Replacement of old equipment is the decision taken by the company to replace the old equipment. It…

Q: (a) The depreciable cost %% (b) The straight-line rate (c) The annual straight-line depreciation %24…

A: Depreciation: Depreciation is diminution in value of an asset . Cost of tangible Assets is…

Q: DEPRECIATION OF FIXED ASSETS - Units of Production (same asset described above) If KKAC chooses…

A: Here in this question, we are required to cost of asset and depreciation per playground ball. As per…

Q: Which of the following costs are reported on a company’s income statement and balance sheet? Select…

A: Solution: "Cost of goods sold; Accumulated depreciation" are reported on a company’s income…

Q: Calculate the total cost, total depreciation, and annual depreciation (in $) for the following…

A: Given information Cost = $88,500 Shipping charges = $625 Setup charges = $2,500 Salvage value =…

Q: Backlog depreciation is debited

A: Backlog depreciation is the short coverage of total depreciation. In other words, backlog…

Q: Reproduction value is the A. Estimate of cost of reproducing, creating , developing or manufacturing…

A: Answer A is correct Explanation:- Reproduction value is the estimate of cost of reproducing,…

Concept explainers

Real Estate

Real estate means ownership of land along with the assets and natural resources that exist on the land. These properties are in real/physical form which is tangible. Real estate simply means land or addition made to land permanently like constructing a residence or different buildings. People invest in real estate to either reside or for wealth creation. Many people investing in real estate further lend the place for occupation or businesses in return for a monthly payment.

Question

100%

ANSWER AND SHOW WORK IN EXCEL

ATTACHED IS QUESTION

9s. 4 A trucking company computes depreciation on its vehicles by a mileage basis. Suppose a delivery truck has a cost of $20,000, a salvage value of $2,000, and an estimated
useful life of 200,000 miles. Determine the depreciation rate per mile.
a. $0.08
b. $0.09
c. $0.10
d. $0.11

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Given data

VIEW

Calculation of depreciation rate per mile

VIEW

Answer

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Units-of-activity depreciation A truck acquired at a cost of 69,000 has an estimated residual value of 12,000, has an estimated useful life of 300,000 miles, and was driven 77,000 miles during the year. Determine (A) the depreciable cost, (B) the depreciation rate, and (C) the units-of-activity depreciation for the year.
16. An asset originally cost $100,000, also incurred installation costs of $10,000 and has an estimated salvage value of $25,000. It is being depreciated under MACRS, using a 5-year normal recovery period. What is the depreciation expense in year 1?A. $15,000B. $12,750C. $11,250D. $22,000
9. Compute for the depreciation in the first year using double declining method. a. 40,000 c. 72,000 b. 36,000 d. 80,000 10. How much is the book value of the equipment as of end of second year using output method of depreciation? a. 360,000 c. 301,500 b. 341,500 d. 230,000
29. A car runs for 200,000 kilometers in 5 years. Which method of depreciation is used if the depreciation is calculated based on the kilometers driven? a. Sum of the Years-Digits method b. Units of production method c. Straight line depreciation d. Written down value method
2. Sonic Corporation purchases a delivery truck for $24,000. The company expects the truck to be in service for 100,000 miles, and the residual value is estimated to be $4,000. What is the depreciation rate using activity-based depreciation?
4. An asset that is book-depreciated over a 5-year period by the straight-linemethod has BV3 = ₱ 62,000 with a depreciation charge of ₱ 26,000 peryear. Determine (a) the first cost of the asset and (b) the assumed salvagevalue
1.)Equipment with a cost of P450,000 has an estimated salvage value of P30,000 and an estimated life of 4 years or 10,000 hours. It is to be depreciated by the straight-line method. What is the amount of depreciation for the first full year, during which the equipment was used 2,700 hours? A. P112,500 B. P105,000 C. P113,400 D. P108,750 2. On June 30, 2016, a fire in Jeremy Company's plant caused the total loss of a production machine. The machine was being depreciated at P20,000 annually. And had a carrying amount of P160,000 on December 31, 2015. On the date of the fire, the fair value of the machine was P220,000 and Jeremy received insurance proceeds of P200,000 in October 2016. In its income statement for the year ended December 31, 2016, what amount should Jeremy recognize as a gain or loss on disposition? Answer:
26. A company purchased equipment valued at $200,000 on January 1. The equipment has an estimated useful life of eight years. The equipment is estimated to have a salvage value of $10,000. Assuming the double declining balance method of depreciation, what is the depreciation for the second year?A $33,333B. $35,625C. $31,667D. $47,500
T1. A machine has a cost of $17,100, an estimated residual value of $4,020, and an estimated service life of seven years. The machine is being depreciated on a straight-line basis. At the end of the second year, what amount will be reported for accumulated depreciation? (Do not round your intermediate calculations. Round annual depreciation amount to the nearest dollar amount.) Multiple Choice $1,869 $3,737 $13,363 $4,886
Equipment with a cost of $148,767.00 has an estimated residual value of $8,167.00 and an estimated life of 7 years or 14,290 hours. It is to be depreciated by the straight-line method. What is the amount of depreciation for the first full year, during which the equipment was used 3,563 hours? Select the correct answer. $35,056.53 $20,085.71 $39.46 $7.00
19. When originally purchased, a vehicle had an estimated useful life of 8 years. The vehicle cost $23,000 and its then estimated salvage value was $1,500. After 4 years of straight-line depreciation, the vehicle's total estimated useful life was revised from 8 years to 6 years and there was no change in the estimated salvage value. The depreciation expense in year 5(five) will be? A. $5,375.00B. $2,687.50C. $5,543.75 D. $2,856.25