Pharoah Interiors purchased a delivery truck for R$34,000 on January 1, 2020. The truck has an expected residual value of R$3,100, and is expected to be driven 103,000 miles over its estimated useful life of 10 years. Actual miles driven were 16,100 in 2020 and 11,700 in 2021. Calculate depreciable cost per unit. (Round answers to 2 decimal places, eg. 0.50.) Depreciable cost per unit R$ per mile
Q: On January 1, 2020, Marigold Company purchased the following two machines for use in its production…
A: Comments; Multiple questions asked Journal - It is books of original entry in which transactions…
Q: On January 1, 2021, the Excel Delivery Company purchased a delivery van for $33,000. At the end of…
A: SOLUTION- 1-DEPRECIATION AS PER STRAIGHT LINE METHOD- STRAIGHT LINE METHOD IS A METHOD OF…
Q: Metlock, Inc. purchased a delivery truck for $30,000 on January 1, 2022. The truck has an expected…
A: Units-of-activity method is one of method used to calculate depreciation expense, this method is…
Q: Gruman Company purchased a machine for $198,000 on January 2, 2019. It made the following estimates:…
A: Given, Purchase cost of machine = $198,000 Residual value = $18,000 Estimated production = 180,000…
Q: Sarasota Corp. purchased Machine no. 201 on May 1, 2020. The following information relating to…
A: All expenses incurred to bring an asset to a condition where it can be used are capitalized as…
Q: n March 2, 2021, HABIBIYUCK bought an equipment costing P1,200,000. It is the Company’s policy to…
A: Solution: Depreciation rate - SLM = 1/10 = 10% Deprecation rate - DDB = 10%*2 = 20% Depreciation for…
Q: ABC Company purchased equipment on January 1, 2020 for $560,000. The equipment has a residual value…
A: Depreciation means fall in value of assets because of use of assets , passage of time or change in…
Q: On July 1, 2020, Zelensky Company, a calendar-year company, purchased a machine for a cash price of…
A: The depreciation expense is charged on fixed assets as reduced value of the fixed asset with usage…
Q: Oriole uses the units-of-production method to calculate depreciation on its taxicabs. Each cab is…
A: Units of production method: Under units-of-production method, depreciation is computed based on the…
Q: Sampson Delivery Company purchased a new delivery truck for $42,000 on April 1, 2019. The truck is…
A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: On January 1, 2018, the Excel Delivery Company purchased a delivery van for $33,000. At the end of…
A: Compute the value depreciation under straight line method.
Q: Voltage Industries, a calendar-year company, purchases equipment for $85,000 on January 2nd, 2022.…
A: Depreciation is charged against the value of fixed assets. It can be calculated by using the…
Q: Speed, Inc., is a shipping company. On 1/1/20, the company purchases a new commercial sleeper truck…
A: Introduction: Depreciation: Decreasing value of fixed assets over its useful life period called…
Q: On January 1, 2016, the Excel Delivery Company purchased a delivery van for $33,000. At the end of…
A: 1.
Q: On January 1, 2021, the Excel Delivery Company purchased a delivery van for $52,000. At the end of…
A: Under straight line method of depreciation , the depreciation remains same every year over the…
Q: On January 1, 2021, the Excel Delivery Company purchased a delivery van for $33,000. At the end of…
A: Double declining rate= 1/useful life*100 in double declining we double the depreciation unlike…
Q: Analysis Component: Which method will result in the greatest: a. Total assets being reported on the…
A: Cost of Computer Equipment $ 1,45,000 Salvage Value $ 24,000 Life 5 Year…
Q: On October 1, 2021, the Allegheny Corporation purchased equipment for $115,000. The estimated…
A: Depreciation is a way to reduce the cost of asset over a period of time due to usage, wear &…
Q: On January 1, 2020, Button Inc. purchased the following two machines for use in its production…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Coronado Interiors purchased a delivery truck for R$33,000 on January 1, 2020. The truck has an…
A: Depreciation can be defined as fall in the asset’s historical value each year. Depreciable amount is…
Q: On July 1, 2020 Coronado's Greenhouse purchased a new delivery truck for $90,000. Coronado estimates…
A: Depreciation expense as per straight line method = (Cost - Residual value)/useful life
Q: The gain on reversal of impairment loss on December 31, 2016 is
A: Calculate impairment loss as on April 1, 2016 as shown below: Impairment loss = Cost - Accumulated…
Q: On July 1, 2020, Lettuce Company, a calendar-year company, purchased a machine for a cash price of…
A: 2020: Depreciation rate = 1/useful life = 1/10 = 10% Depreciation expense (for the entire year) = 2…
Q: On June 30, 2018, Clooney Printers purchased a printer for $59,000. It expects the printer to last…
A: Depreciation = cost - residual value/ useful life
Q: Cheers Delivery Company purchased a new delivery truck for $63,000 on April 1, 2019. The truck is…
A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…
Q: - A factory machine was purchased for $300,000 on January 1, 2020. It was estimated that it would…
A: Under units of activity method, Yearly Depreciation = (Cost of asset - salvage value)× Units…
Q: On January 1, 2021, the Excel Delivery Company purchased a delivery van for $33,000. At the end of…
A: Depreciation is charged against the value of fixed assets. It can be calculated by using the…
Q: Clifford Delivery Company purchased a new delivery truck for $45,000 on April 1, 2019. The truck is…
A: Since, we answer only upto 3 sub-parts, we shall answer first three. Please resubmit a new question…
Q: Basalt Inc bought a new vehicle on September 1, 2021 for $50,000. The vehicle is estimated to have a…
A: Depreciation means the loss in value of assets because of usage of assets , passage of time or…
Q: 25-3) Colorado Company has been using the sum-of-the-years'-digits depreciation method to depreciate…
A: Sum of the digits = n(n+1) / 2 n = the useful life in years
Q: Sandhill Ltd. purchased a delivery truck on January 1, 2021, at a cost of $80,640. The truck is…
A: Depreciation is considered a reduction in the value of assets due to the use of that asset. We can…
Q: Vita Water purchased a used machine for $122,000 on January 2, 2020. It was repaired the next day at…
A: A journal entry is a form of accounting entry that is used to report a business transaction in a…
Q: Lightning Delivery Company purchased a new delivery truck for $45,000 on April 1, 2019. The truck is…
A: Sum-of-the-years'-digits method: Workings: Activity method: Double-declining balance method:…
Q: On Jan. 1, 2021, Mother, Inc., whose financial year end is every Dec. 31, purchased a unit of…
A: Solution:- a)Calculation of the depreciation expense for 2021 using the straight line depreciation…
Q: On January 1, 2019, Woodstock, Inc. purchased a machine costing $42.400. Woodstock also paid $2.200…
A: Depreciable cost=Cost+installation-Residual value=$42,400+$2,200-$6,200=$44,600-$6,200=$38,400
Q: The Jefferson Co. purchased a machine on January 1, 2020. The machine cost $595,000. It had an…
A: Double declining depreciation rate = Straight line depreciation rate x 2 = (100/10 years) x 2 = 20%
Q: Blue Company purchased equipment for $266,000 on October 1, 2020. It is estimated that the equipment…
A: Given, Cost $ 266,000 Salvage value $ 14,000 Depreciable cost $ 252,000…
Q: On March 25, 2020, Blue Steel co. purchased a new extrusion machine for Php 3,344,015 with an…
A: Formula: Annual Depreciation (straight line method) = (Cost of the assets - Residual value) /…
Q: il 1, 2021, Metro Co. purchased machinery at a cost of $42,000. The machinery is expected to last 10…
A: Solution: Sum of years digits = 10+9+8+7+6+5+4+3+2+1 = 55
Q: Tradewinds Construction Company had 4 dump trucks, 2 excavators, and other construction machinery…
A: In order to determine the net investment, the depreciation is required to be deducted from the gross…
Q: Winston Printing purchased a new machine on January 1. 2020, at a cost of 120000$. The company…
A: Depreciation can be define as an expense which is calculated on the fixed assets like machinery,…
Q: In August 2020, Heavy-lift Helicopters Ltd. purchased a new helicopter for its logging and heavy…
A: Units of production method A method that is used to calculate depreciation and under which the usage…
Q: The cost of equipment purchased by Concord, Inc., on April 1, 2020, is $127,000. It is estimated…
A: As posted multiple sub parts we are answering only first three sub parts kindly repost the…
Q: Cheyenne Corp. purchased a delivery truck for $42,000 on January 1, 2022. The truck has an expected…
A: Depreciation expense refers to the amount needs to be deducted from the gross profit of a company in…
Q: Storm Delivery Company purchased a new delivery truck for $69,000 on April 1, 2019. The truck is…
A: Depreciation is a reduction in the value of assets due to the usage of that asset. We can evaluate…
Q: Telimos purchased a machinery for 315,000 on May 1,2017. It is estimated that it will have a useful…
A: Cost of the machine=315,000 Salvage value of the machine=15,000 Useful life of the machine=10 years…
Q: On January 1, 2021, Capiz Company purchased factory equipment for P8,000,000. Estimated salvage…
A: Double declining balance method: It is the method of charging depreciation where the depreciation is…
Q: Vita Water purchased a used machine for $117,200 on January 2, 2020. It was repaired the next day at…
A: The depreciation expense is charged on fixed assets as reduction in the value of fixed assets with…
Q: On January 3, 2020, Xenex Innovations purchased computer equipment for $145,000. The equipment will…
A: Depreciation Expenses: It is the part of fixed assets that has been viewed as consumed in current…
Q: Cheers Delivery Company purchased a new delivery truck for $63,000 on April 1, 2019. The truck is…
A: solution : given Date of purchase April 1 2019 Purchase cost $63000 Life 5 years…
please make sure the answer is correct 100%
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Hunter Company purchased a light truck on January 2, 2019 for 18,000. The truck, which will be used for deliveries, has the following characteristics: Estimated life: 5 years Estimated residual value: 3,000 Depreciation method for financial statements: straight-line method Depreciation for income tax purposes: MACRS (3-year life) From 2019 through 2023, each year, Hunter had sales of 100,000, cost of goods sold of 60,000, and operating expenses (excluding depreciation) of 15,000. The truck was disposed of on December 31, 2023, for 2,000. Required: 1. Prepare an income statement for financial reporting through pretax accounting income for each of the 5 years, 2019 through 2023. 2. Prepare, instead, an income statement for income tax purposes through taxable income for each of the 5 years, 2019 through 2023. 3. Compare the total income for all 5 years under Requirements 1 and 2.On May 10, 2019, Horan Company purchased equipment for 25,000. The equipment has an estimated service life of 5 years and zero residual value. Assume that the straight-line depreciation method is used. Required: Compute the depreciation expense for 2019 for each of the following four alternatives: 1. Horan computes depreciation expense to the nearest day. (Use 12 months of 30 days each and round the daily depreciation rate to 2 decimal places.) 2. Horan computes depreciation expense to the nearest month. Assets purchased in the first half of the month are considered owned for the whole month. 3. Horan computes depreciation expense to the nearest whole year. Assets purchased in the first half of the year are considered owned for the whole year. 4. Horan records one-half years depreciation expense on all assets purchased during the year.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 it expects to use the truck for 26,000 miles. Calculate the annual depreciation expense.
- Kam Company purchased a machine on January 2, 2019, for 20,000. The machine had an expected life of 8 years and a residual value of 300. The double-declining-balance method of depreciation is used. Required: 1. Compute the depreciation expense for each year of the assets life and book value at the end of each year. 2. Assuming that the company has a policy of always changing to the straight-line method at the midpoint of the assets life, compute the depreciation expense for each year of the assets life. 3. Assuming that the company always changes to the straight-line method at the beginning of the year when the annual straight-line amount exceeds the double-declining-balance amount, compute the depreciation expense for each year of the assets life.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.Alfredo Company purchased a new 3-D printer for $900,000. Although this printer is expected to last for ten years, Alfredo knows the technology will become old quickly, and so they plan to replace this printer in three years. At that point, Alfredo believes it will be able to sell the printer for $15,000. Calculate yearly depreciation using the double-declining-balance method.
- At the beginning of 2020, Holden Companys controller asked you to prepare correcting entries for the following three situations: 1. Machine X was purchased for 100,000 on January 1, 2015. Straight-line depreciation has been recorded for 5 years, and the Accumulated Depreciation account has a balance of 45,000. The estimated residual value remains at 10,000, but the service life is now estimated to be 1 year longer than originally estimated. 2. Machine Y was purchased for 40,000 on January 1, 2018. It had an estimated residual value of 4,000 and an estimated service life of 8 years. It has been depreciated under the sum-of-the-years-digits method for 2 years. Now, the company has decided to change to the straight-line method. 3. Machine Z was purchased for 80,000 on January 1, 2019. Double-declining-balance depreciation has been recorded for 1 year. The estimated residual value is 8,000 and the estimated service life is 5 years. The computation of the depreciation erroneously included the estimated residual value. Required: Prepare any necessary correcting journal entries for each situation. Also prepare the journal entry for each situation to record the depreciation for 2020. Ignore income taxes.Referring to PA7 where Kenzie Company purchased a 3-D printer for $450,000, consider how the purchase of the printer impacts not only depreciation expense each year but also the assets book value. What amount will be recorded as depreciation expense each year, and what will the book value be at the end of each year after depreciation is recorded?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.
- 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.On July 1, 2018, Mundo Corporation purchased factory equipment for 50,000. Residual value was estimated at 2,000. The equipment will be depreciated over 10 years using the double-declining balance method. Counting the year of acquisition as one-half year, Mundo should record 2019 depredation expense of: a. 7,680 b. 9,000 c. 9,600 d. 10,000Urquhart Global purchases a building to house its administrative offices for $500,000. The best estimate of the salvage value at the time of purchase was $45,000, and it is expected to be used for forty years. Urquhart uses the straight-line depreciation method for all buildings. After ten years of recording depreciation, Urquhart determines that the building will be useful for a total of fifty years instead of forty. Calculate annual depreciation expense for the first ten years. Determine the depreciation expense for the final forty years of the assets life, and create the journal entry for year eleven.