Malone Delivery Company purchased a new delivery truck for $63,000 on April 1, 2019. The truck is expected to have a service life of 5 years or 90,000 miles and a residual value of $3,000. The truck was driven 10,000 miles in 2019 and 18,000 miles in 2020. Malone computes depreciation expense to the nearest whole month. Required: 1. Compute depreciation expense for 2019 and 2020 using the following methods: (Round your answers to the nearest dollar.) a. Straight-line method 2019 9,000 V 12,000v b. Sum-of-the-years'-digits method $ 15,000 V 2020 2019 2020 $ 17,000 c. Double-declining-balance method 2019 25,200 X 2020 $ 15,120 x d. Activity method 2019 2020 2. For each method, what is the book value of the machine at the end of 2019? At the end of 2020? (Round your answers to the nearest dollar.) a. Straight-line method 2019 2020 b. Sum-of-the-years'-digits method 2019 2020 c. Double-declining-balance method 2019 24 2020 d. Activity method 2019 2020 %24

Malone Delivery Company purchased a new delivery truck for $63,000 on April 1, 2019. The truck is expected to have a service life of 5 years or 90,000 miles and a residual value of $3,000. The truck was driven 10,000 miles in 2019 and 18,000 miles in 2020. Malone computes depreciation expense to the nearest whole month. Required: 1. Compute depreciation expense for 2019 and 2020 using the following methods: (Round your answers to the nearest dollar.) a. Straight-line method 2019 9,000 V 12,000v b. Sum-of-the-years'-digits method $ 15,000 V 2020 2019 2020 $ 17,000 c. Double-declining-balance method 2019 25,200 X 2020 $ 15,120 x d. Activity method 2019 2020 2. For each method, what is the book value of the machine at the end of 2019? At the end of 2020? (Round your answers to the nearest dollar.) a. Straight-line method 2019 2020 b. Sum-of-the-years'-digits method 2019 2020 c. Double-declining-balance method 2019 24 2020 d. Activity method 2019 2020 %24

Name: Depreciation for Partial PeriodsMalone Delivery Company purchased a n
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Description: Depreciation for Partial PeriodsMalone Delivery Company purchased a new delivery truck for $63,000 on April 1, 2019. The truck is expected to have a service life of 5 years or 90,000 miles and a residual value of $3,000. The truck was driven 10,000

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter11: Depreciation, Depletion, Impairment, And Disposal

Section: Chapter Questions

Problem 2E: Depreciation Methods Sorter Company purchased equipment for 200,000 on January 2, 2019. The...

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