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Dugal chose to use the units of production method for the vehicle, and originally estimated a residual value of $5,000 and a total lifetime units 200,000 kilometres. During 20x13, Dugal realized that the vehicle was likely only going to have a life of 180,000kms, but would likely still have the same residual value as originally thought. Assuming 120,000 kilometres had been driven up until December 31, 20x12, calculate the depreciation expense for the 25,000 kilometres driven during 20x13.   vehicle original cost: 85,000

Dugal chose to use the units of production method for the vehicle, and originally estimated a residual value of $5,000 and a total lifetime units 200,000 kilometres. During 20x13, Dugal realized that the vehicle was likely only going to have a life of 180,000kms, but would likely still have the same residual value as originally thought. Assuming 120,000 kilometres had been driven up until December 31, 20x12, calculate the depreciation expense for the 25,000 kilometres driven during 20x13.   vehicle original cost: 85,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Dugal chose to use the units of production method for the vehicle, and originally estimated a residual value of $5,000 and a total lifetime units 200,000 kilometres. During 20x13, Dugal realized that the vehicle was likely only going to have a life of 180,000kms, but would likely still have the same residual value as originally thought. Assuming 120,000 kilometres had been driven up until December 31, 20x12, calculate the depreciation expense for the 25,000 kilometres driven during 20x13.

 

vehicle original cost: 85,000

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