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Piccadilly Pizza bought a used Ford delivery van on January 2, 2021, for $18,600. The van was expected to remain in service for four years (57,000 miles). At the end of its useful life, Piccadilly management estimated that the van's residual value would be $1,500. The van traveled 20,500 miles the first year, 16,000 miles the second year, 15,400 miles the third year, and 5,100 miles in the fourth year. X Read the requirements. 2021 2022 2023 2024 Requirement 1. Prepare a schedule of depreciation expense per year for the van under the three depreciation methods. Prepare a schedule of depreciation expense per year for the van under the straight-line method. (Complete all input fields. Enter a 0 for any zero balances.) Straight-Line Year 2021 2022 2023 2024 Total Prepare a schedule of depreciation expense per year for the van under the units-of-production (UOP) method. (Round any intermediary computations to two decimal places, X.XX, and your final answers to the nearest whole dollar. Complete all input fields. Enter a 0 for any zero balances.) Year UOP Requirements III 1. Prepare a schedule of depreciation expense per year for the van under the three depreciation methods. (For units-of-production and double-declining-balance methods, round to the nearest two decimal places after each step of the calculation.) 2. Which method best tracks the wear and tear on the van? 3. Which method would Piccadilly prefer to use for income tax purposes? Explain your reasoning in detail. Print Done

Piccadilly Pizza bought a used Ford delivery van on January 2, 2021, for $18,600. The van was expected to remain in service for four years (57,000 miles). At the end of its useful life, Piccadilly management estimated that the van's residual value would be $1,500. The van traveled 20,500 miles the first year, 16,000 miles the second year, 15,400 miles the third year, and 5,100 miles in the fourth year. X Read the requirements. 2021 2022 2023 2024 Requirement 1. Prepare a schedule of depreciation expense per year for the van under the three depreciation methods. Prepare a schedule of depreciation expense per year for the van under the straight-line method. (Complete all input fields. Enter a 0 for any zero balances.) Straight-Line Year 2021 2022 2023 2024 Total Prepare a schedule of depreciation expense per year for the van under the units-of-production (UOP) method. (Round any intermediary computations to two decimal places, X.XX, and your final answers to the nearest whole dollar. Complete all input fields. Enter a 0 for any zero balances.) Year UOP Requirements III 1. Prepare a schedule of depreciation expense per year for the van under the three depreciation methods. (For units-of-production and double-declining-balance methods, round to the nearest two decimal places after each step of the calculation.) 2. Which method best tracks the wear and tear on the van? 3. Which method would Piccadilly prefer to use for income tax purposes? Explain your reasoning in detail. Print Done

Principles of Accounting Volume 1
Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter11: Long-term Assets
Section: Chapter Questions
Problem 11PA: Montezuma Inc. purchases a delivery truck for $15,000. The truck has a salvage value of $3,000 and...
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Piccadilly Pizza bought a used Ford delivery van on January 2, 2021, for $18,600. The van was expected to remain in service for four years (57,000 miles). At the end of its useful life, Piccadilly management estimated that the van's residual value would be $1,500. The van traveled 20,500 miles the first year, 16,000 miles the second year, 15,400 miles the third year, and 5,100 miles in the fourth year. X Read the requirements. Requirement 1. Prepare a schedule of depreciation expense per year for the van under the three depreciation methods. Prepare a schedule of depreciation expense per year for the van under the straight-line method. (Complete all input fields. Enter a 0 for any zero balances.) Year Straight-Line 2021 2022 2023 2024 Total C UOP 2021 2022 2023 2024 Total Prepare a schedule of depreciation expense per year for the van under the units-of-production (UOP) method. (Round any intermediary computations to two decimal places, X.XX, and your final answers to the nearest whole dollar. Complete all input fields. Enter a 0 for any zero balances.) Year 2021 2022 2023 2024 Total Prepare a schedule of depreciation expense per year for the van under the double-declining-balance (DDB) method. (Round any intermediary computations to two decimal places, XXX, and your final answers to the nearest whole dollar. Complete all input fields. Enter a 0 for any zero balances.) Year DDB Requirements 1. Prepare a schedule of depreciation expense per year for the van under the three depreciation methods. (For units-of-production and double-declining-balance methods, round to the nearest two decimal places after each step of the calculation.) 2. Which method best tracks the wear and tear on the van? 3. Which method would Piccadilly prefer to use for income tax purposes? Explain your reasoning in detail. Print Done
Transcribed Image Text:Piccadilly Pizza bought a used Ford delivery van on January 2, 2021, for $18,600. The van was expected to remain in service for four years (57,000 miles). At the end of its useful life, Piccadilly management estimated that the van's residual value would be $1,500. The van traveled 20,500 miles the first year, 16,000 miles the second year, 15,400 miles the third year, and 5,100 miles in the fourth year. X Read the requirements. Requirement 1. Prepare a schedule of depreciation expense per year for the van under the three depreciation methods. Prepare a schedule of depreciation expense per year for the van under the straight-line method. (Complete all input fields. Enter a 0 for any zero balances.) Year Straight-Line 2021 2022 2023 2024 Total C UOP 2021 2022 2023 2024 Total Prepare a schedule of depreciation expense per year for the van under the units-of-production (UOP) method. (Round any intermediary computations to two decimal places, X.XX, and your final answers to the nearest whole dollar. Complete all input fields. Enter a 0 for any zero balances.) Year 2021 2022 2023 2024 Total Prepare a schedule of depreciation expense per year for the van under the double-declining-balance (DDB) method. (Round any intermediary computations to two decimal places, XXX, and your final answers to the nearest whole dollar. Complete all input fields. Enter a 0 for any zero balances.) Year DDB Requirements 1. Prepare a schedule of depreciation expense per year for the van under the three depreciation methods. (For units-of-production and double-declining-balance methods, round to the nearest two decimal places after each step of the calculation.) 2. Which method best tracks the wear and tear on the van? 3. Which method would Piccadilly prefer to use for income tax purposes? Explain your reasoning in detail. Print Done
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