On 1 Jan 2020, Company A purchased a vehicle costing $21,000. A certain vehicle upgrade of $3,000 was added with the purchase. Also, a delivery fee of $500 was included in the expense. The company expects the vehicle to be operational for 4 years at the end of which it can be sold for $5,200. Calculate depreciation expense for the year ended 31 Dec 2020, 2021, 2022 and 2023 using the Straight Line and Sum-of-Year's Digits method.

On 1 Jan 2020, Company A purchased a vehicle costing $21,000. A certain vehicle upgrade of $3,000 was added with the purchase. Also, a delivery fee of $500 was included in the expense. The company expects the vehicle to be operational for 4 years at the end of which it can be sold for $5,200. Calculate depreciation expense for the year ended 31 Dec 2020, 2021, 2022 and 2023 using the Straight Line and Sum-of-Year's Digits method.

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter8: Depreciation, Cost Recovery, Amortization, And Depletion

Section: Chapter Questions

Problem 47P

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