On January 1, Year 1, Marino Moving Company paid $64,000 cash to purchase a truck. The truck was expected to have a four year useful life and a $4,000 salvage value. If Marino uses the straight-line method, the amount of book value shown on the Year 2 balance sheet is Multiple Choice

On January 1, Year 1, Marino Moving Company paid $64,000 cash to purchase a truck. The truck was expected to have a four year useful life and a $4,000 salvage value. If Marino uses the straight-line method, the amount of book value shown on the Year 2 balance sheet is Multiple Choice

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 3EB: Montello Inc. purchases a delivery truck for $25,000. The truck has a salvage value of $6,000 and is...

See similar textbooks

Related questions

Q: Morganton Company makes one product and it provided the following information to help prepare the…

A: Cash disbursement means the expense made in cash. It could be expense incurred on raw material,…

Q: Number

A: Introduction: Inventory management: Its refers to tracking required materials and raw consumables…

Q: Johnson Company estimates that its production workers will work 88,400 direct labor hours to produce…

A: Given, Estimated overhead = $1,091,230 Estimated production = 9,170 units Predetermined overhead…

Q: What is the regular selling price of an item purchased for $1270 if the markup is 20% of the regular…

A: According to the given question, we are required to compute the regular selling price. Mark-up:…

Q: Richard Gaziano is a manager for Health Care, Incorporated. Health Care deducts Social Security,…

A: Answer:- Net pay meaning:- Net pay is the term used to describe the take-home pay that an employee…

Q: Identify the following as a fixed asset (FA), or intangible asset (IA), natural resource (NR), or…

A: Fixed assets are considered tangible assets because they have physical existence. So it includes…

Q: On January 1, Year 1, Friedman Company purchased a truck that cost $58.000. The truck had an…

A: Solution: Cost of truck = $58,000 Expected salvage value = $9,000 Depreciable cost = Cost of truck…

Q: What's the answer to part D

A: A depreciation expenditure is the amount that is subtracted from a business's gross profit to…

Q: Describe in detail the characteristics of managerial accounting.

A: Solution Managerial accounting is that part of accounting that deals with quality of information. It…

Q: If a stock consistently goes down (up) by 1.6% when the market portfolio goes down (up) by 1.2%,…

A: A stock's volatility can be compared to the market's overall systematic risk using a beta…

Q: Laura Avila is a 20-year-old female who recently graduated from CNM with her associates degree in…

Q: Buried Treasure Co.'s relevant range of production is 7,000 units to 13,000 units. When it produces…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: capacity of 14,000 units and during the month, one unit of the product was sold for $560. Production…

A: Marginal costing refers to the concept of determine the change occur in the total cost of the…

Q: Hw.145. Francisco paid the following taxes in 2022: !"$6,000 property taxes on their personal…

A: There are two different types of deductions itemized and standard deduction. Itemized deduction is…

Q: Morganton Company makes one product and it provided the following information to help prepare the…

A: Formula used: Accounts receivable balance at the end of July=Units sold in July×Selling price per…

Q: A company's flexible budget for 45,000 units of production showed variable overhead costs of $60,750…

A: Both Fixed and Variable cost are very important component that forms the total cost of the product.…

Q: 9-10. On January 2, 2020, a new machine was acquired for 400,000. The machine has estimated salvage…

A: Depreciation is the non-cash expense which is charged by the entity in order to report the regular…

Q: Britney is a baseball fan and attends several games per season. Her expenses per season are listed…

A: Price Index for year 2 can be calculated as: = Price in Year 2 / Price in Year 1 * Price Index for…

Q: SecuriCorp operates a fleet of armored cars that make scheduled pickups and deliveries in the Los…

A: The first stage allocation of activity cost pool is dividing the individual costs to all the…

Q: Mary Alexander is a sole trader who operates a small wholesale business in Kingston, Jamaica. On…

A: Answer:- Gross profit meaning:- The profit a company makes after deducting all of the expenses…

Q: er year. The residual value is $10,000. Calculate the amortization expense in the irst two years…

A: Declining balance method of the amortisation is the method in which amortisation is charged on WDV.

Q: A seller uses a perpetual inventory system, and on April 17, a customer returns $1,000 of…

A: JOURNAL ENTRIES Journal Entry is the Process of Recording & Posting the Financial & Non…

Q: Wynter Company manufactures and sells a single product. Its budgeted production stands at 25 000…

A: Fixed Cost: Fixed cost is a cost that remains same irrespective of the increase or decrease in the…

Q: TRUE OR FALSE Companies typically reacquire shares with the hopes of selling them at a higher price…

A: Solution: Company generally reacquires their own share to reduce the equity and to provide more…

Q: The debtor-creditor relationship is one where the customer instructs the bank to act on its behalf…

A: Debtor is the person who owes the money or to whom the money is lend. Whereas, creditor is the…

Q: A local regional credit union, Metro Credit Union, has identified the major activities of the credit…

A: Total Traceable cost of deposits = $26,000 Cost driver = 400,000 deposits Therefore, cost per…

Q: If fixed costs are $255,000, the unit selling price is $126, and the unit variable costs are $79,…

A: The break-even point meant to that level of sale where the company is running at the position of no…

Q: Adwoa is a business consultant. She provided the following information at the end of her first…

A: Income Statement :— It is one of the financial statement that shows profitability of company during…

Q: Z company acquire equipment in 2012 for $317 million. At the time of recogintion of the equipment as…

A: Introduction: Under the straight line method of depreciation, depreciation is charged on the asset…

Q: Clara North is really confused. "I've got three different numbers here and I don't know what is…

A: Clara North has an account with a bank. She has got three different balances. As per her record she…

Q: If fixed costs are $287,000, the unit selling price is $33, and the unit variable costs are $15, the…

A: Break-even point is the number of units position where the company is making no profit no loss.…

Q: rey Monson starts a merchandising business on December 1 and enters into the following three…

A: Lets understand the basics. In perpetual inventory system basis, transaction gets recorded on real…

Q: What are the four primary elements described in the definition of auditing?

A: An audit consists of a review or inspection of several books of accounts carried out by an auditor,…

Q: and profit is 15% of the selling price. During an inventory sale, the knives are marked down by 30%…

A: Goods are sold on the margins and margins depends on the policy of the company and competition in…

Q: An employee received the following benefits: regular compensation income, net of P25,000 SSS, PHIC &…

Q: January 1, Year 1, Marino Moving Company paid $64,000 cash to purchase a truck. The truck was…

A: Solution: Under straight line method of depreciation, depreciation is equal in each month.…

Q: (c) Critically discuss the new strategy developed by Jessica. Use the results of your calculations…

A: SOLUTION :- The new strategy would not be helpful at all for the company, in fact, it would even…

Q: Please solve the below and provide explanation thank you

A: Balance Sheet A balance sheet provides you with a quick overview of your company's financial…

Q: TRUE OR FALSE Basic earnings per share is required to be reported for all publicly-traded…

A: The answer is True. All publicly traded corporations are required to report basic earning per share…

Q: Abe Corporation discounted a 120-day note with a maturity value of $8,000 dated June 8 at the…

A: ORDINARY INTEREST ordinary interest is Finance interest based on a period of 360 days, rather…

Q: Jill files a joint tax return with her husband. She who works at a retail store and earned $30,000…

A: Contribution to the made to the retirement amount can be claimed for deductions but amount of…

Q: 1. Fruit Tea's data show the following information: Sept. Oct. 25,000 27,000 $ 31 $ 31 $ 31 $ 1.75 $…

A: As per the given information: AugSeptOctNovDecEstimated sales…

Q: A company purchased a machine for RO 10,000. It has a book value of RO3,000 but has become obsolete…

A: Book value of the machine = RO3,000 As it became obsolete it cannot be sold in the present condition…

Q: In a manufacturing company where the Procurement Department largely buys items for production, the…

A: Solution: To start the procurement activity, procurement department should received requirement…

Q: Raphael Corporation’s balance sheet shows the following stockholders’ equity section. Preferred…

A: Dividends are defined as the part of the profit that is not distributed by the company but is…

Q: Hw.148. Income tax is levied on all of the following taxable items except: Wages…

A: Income tax payment are to be paid for income earned and it is necessary to for every citizen to pay…

Q: Cheryl Montoya picked up the phone and called her boss, Wes Chan, the vice president of marketing at…

A: Break even point is the point at which total cost and total revenue of a company is equal and there…

Q: Mobilee Oil Company accepted a $10,000, 120 day note dated March 3 at 8 1/2% to settle a past due…

A: The note receivables is a promise from the creditor to pay the amount with interest on the due date.…

Q: Four grams of musk oll are required for each bottle of Mink Caress, a very popular perfume made by a…

A: Direct Material Budget :— This budget is prepared to estimate the number of units and cost of direct…

Q: Paper Company receives a $6,000, 3-month, 6% promissory note from Dame Company in settlement of an…

A: When the company sold goods to its customer on credit then Account Receivables are debited and when…

Question

100%

On January 1, Year 1, Marino Moving Company paid $64,000 cash to purchase a truck. The truck was expected to have a four year useful life and a $4,000 salvage value. If Marino uses the straight-line method, the
amount of book value shown on the Year 2 balance sheet is
Multiple Choice
O
O
O
O
$32,000
$34,000
$30,000
$28,000

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Section 179 Deduction and Modified Accelerated Cost Recovery System (MACRS) Depreciation

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Montello Inc. purchases a delivery truck for $25,000. The truck has a salvage value of $6,000 and is expected to be driven for ten years. Montello uses the straight-line depreciation method. Calculate the annual depreciation expense.
Montezuma Inc. purchases a delivery truck for $15,000. The truck has a salvage value of $3,000 and is expected to be driven for eight years. Montezuma uses the straight-line depreciation method. Calculate the annual depreciation expense. After three years of recording depreciation, Montezuma determines that the delivery truck will only be useful for another three years and that the salvage value will increase to $4,000. Determine the depreciation expense for the final three years of the assets life, and create the journal entry for year four.
A delivery van was bought for 18,000. The estimated life of the van is four years. The trade-in value at the end of four years is estimated to be 2,000. Required Prepare a depreciation schedule for the four-year period using the straight-line method. Check Figure Year 1 depreciation, 4,000
Montezuma Inc. purchases a delivery truck for $20,000. The truck has a salvage value of $8,000 and is expected to be driven for ten years. Montezuma uses the straight-line depreciation method. Calculate the annual depreciation expense. After five years of recording depreciation, Montezuma determines that the delivery truck will be useful for another five years (ten years in total, as originally expected) and that the salvage value will increase to $10,000. Determine the depreciation expense for the final five years of the assets life, and create the journal entry for years 6â€“10 (the entry will be the same for each of the five years).
Grandorf Company replaced the engine in a truck for 8,000 and expects the new engine will extend the life of the truck two years beyond the original estimated life. Related information is provided below. Cost of truck 65,000 Salvage value 5,000 Original estimated life 6 years The truck was purchased on January 1, 20-1. The engine was replaced on January 1, 20-6. Using straight-line depreciation, compute depreciation expense for 20-6.
Jada Company had the following transactions during the year: Purchased a machine for $500,000 using a long-term note to finance it Paid $500 for ordinary repair Purchased a patent for $45,000 cash Paid $200,000 cash for addition to an existing building Paid $60,000 for monthly salaries Paid $250 for routine maintenance on equipment Paid $10,000 for major repairs Depreciation expense recorded for the year is $25,000 If all transactions were recorded properly, what is the amount of increase to the Property, Plant, and Equipment section of Jadas balance sheet resulting from this years transactions? What amount did Jada report on the income statement for expenses for the year?
Montello Inc. purchases a delivery truck for $15,000. The truck has a salvage value of $3,000 and is expected to be driven for 120,000 miles. Montello uses the units-of-production depreciation method and in year one it expects to use the truck for 23,000 miles. Calculate the annual depreciation expense.
When depreciation is recorded each period, what account is debited? a. Depreciation Expense b. Cash c. Accumulated Depreciation d. The fixed asset account involved Use the following information for Multiple-Choice Questions 7-4 through 7-6: Cox Inc. acquired a machine for on January 1, 2019. The machine has a salvage value of $20,000 and a 5-year useful life. Cox expects the machine to run for 15,000 machine hours. The machine was actually used for 4,200 hours in 2019 and 3,450 hours in 2020.
A truck was recently purchased for 75,000 with a salvage value of 5,000 and an estimated useful life of eight years or 150,000 miles (24,000 miles per year for the first five years and 10,000 miles per year after that). Enter the new information in the Data Section of the worksheet. Again, make sure the totals for all three methods are in agreement. Print the worksheet. Save this new data as DEPREC5.
Colquhoun International purchases a warehouse for $300,000. The best estimate of the salvage value at the time of purchase was $15,000, and it is expected to be used for twenty-five years. Colquhoun uses the straight-line depreciation method for all warehouse buildings. After four years of recording depreciation, Colquhoun determines that the warehouse will be useful for only another fifteen years. Calculate annual depreciation expense for the first four years. Determine the depreciation expense for the final fifteen years of the assets life, and create the journal entry for year five.
Montello Inc. purchases a delivery truck for $25,000. The truck has a salvage value of $6,000 and is expected to be driven for 125,000 miles. Montello uses the units-of-production depreciation method, and in year one the company expects the truck to be driven for 26,000 miles; in year two, 30,000 miles; and in year three, 40,000 miles. Consider how the purchase of the truck will impact Montellos depreciation expense each year and what the trucks book value will be each year after depreciation expense is recorded.
Akron Incorporated purchased an asset at the beginning of Year 1 for 375,000. The estimated residual value is 15,000. Akron estimates that the asset has a service life of 5 years. Calculate the depreciation expense using the sum-of-the-years-digits method for Years 1 and 2 of the assets life.