On 11/01/20X1, TK purchases a new truck at a price of EUR 205,000 plus VAT on Ziel. The transfer of the truck incurs costs of EUR 5,950 including VAT, which must be paid in cash. The insurancefor the truck is EUR 480 per year and will be transferred from the company bank account on 01.11.20X1 for one year in advance. The usual useful life is 7 years. The total performance of the truckis estimated at 250,000 km. Which of the following statements regarding business transactions in 20X1 is/are correct?O With use-based depreciation and a use of 11,000 km in the year 20X1, the residual book value on 12/31/20X1 is EUR 194,600.O With straight-line depreciation, the residual book value on 12/31/20X1 is EUR 205,000.O With arithmetic degressive depreciation, the residual book value on December 31, 2020X1 is EUR 201,250.O With geometric degressive depreciation and a geometric depreciation rate of 25%, the residual book value on December 31, 2020X1 is EUR 205,000.

On 11/01/20X1, TK purchases a new truck at a price of EUR 205,000 plus VAT on Ziel. The transfer of the truck incurs costs of EUR 5,950 including VAT, which must be paid in cash. The insurance for the truck is EUR 480 per year and will be transferred from the company bank account on 01.11.20X1 for one year in advance. The usual useful life is 7 years. The total performance of the truck is estimated at 250,000 km. Which of the following statements regarding business transactions in 20X1 is/are correct?

On 11/01/20X1, TK purchases a new truck at a price of EUR 205,000 plus VAT on Ziel. The transfer of the truck incurs costs of EUR 5,950 including VAT, which must be paid in cash. The insurance for the truck is EUR 480 per year and will be transferred from the company bank account on 01.11.20X1 for one year in advance. The usual useful life is 7 years. The total performance of the truck is estimated at 250,000 km. Which of the following statements regarding business transactions in 20X1 is/are correct?

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

Chapter20: Accounting For Leases

Section: Chapter Questions

Problem 10MC: On August 1, 2019, Kern Company leased a machine to Day Company for a 6-year period requiring...

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