On 1 Jan 2020, Company A purchased a vehicle costing $25,000. 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 $5,000. Calculate depreciation expense for the year ended 31 Dec 2020, 2021, 2022 and 2023 using the Straight Line and Sum-of-Year's Digits method. Straight Line Sum-of-Year's Digits Time Depreciation (xx.xx} ($) Book Value (xx.xx) ($) Depreciation (xX.xx} ($) Book Value (xx.xx} ($) 31 Dec 2020 [ Select] [ Select ] 31 Dec 2021 [ Select ] [ Select ] 31 Dec 2022 [ Select ] 31 Dec 2023
On 1 Jan 2020, Company A purchased a vehicle costing $25,000. 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 $5,000. Calculate depreciation expense for the year ended 31 Dec 2020, 2021, 2022 and 2023 using the Straight Line and Sum-of-Year's Digits method. Straight Line Sum-of-Year's Digits Time Depreciation (xx.xx} ($) Book Value (xx.xx) ($) Depreciation (xX.xx} ($) Book Value (xx.xx} ($) 31 Dec 2020 [ Select] [ Select ] 31 Dec 2021 [ Select ] [ Select ] 31 Dec 2022 [ Select ] 31 Dec 2023
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 10E: Hathaway Company purchased a copying machine for 8,700 on October 1, 2019. The machines residual...
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