Q1/The cost of a vehicle at the time of purchasing is(80,000)$, its expected useful life is (10) years , theselvage value is (10,000) $, determine the following-the depreciation value at the end of ( 9th )year using declinebalance method.-the book value at the end of (6th) year using straight linemethod.-total depreciation for (7) years using sum of years digitsmethod.-the book value at the end of (4th ) year using sum of yeardigits method.-If the vehicle sold after (5) years with 40,000 $, was it soldwith profit? Use decline balance method.-depreciation at the end of (5th) year using straight linemethod.

Explanation - 1. Depreciation Expenses - This is an expense booked on the income statement debit…

Answered: ,000)$, its e: vage value is

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,000)$, its e: vage value is

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 5MC: A machine with a 4-year estimated useful life and an estimated 15% residual value was acquired on...

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Question

Q1/The cost of a vehicle at the time of purchasing is
(80,000)$, its expected useful life is (10) years , the
selvage value is (10,000) $, determine the following
-the depreciation value at the end of ( 9th )year using decline
balance method.
-the book value at the end of (6th) year using straight line
method.
-total depreciation for (7) years using sum of years digits
method.
-the book value at the end of (4th ) year using sum of year
digits method.
-If the vehicle sold after (5) years with 40,000 $, was it sold
with profit? Use decline balance method.
-depreciation at the end of (5th) year using straight line
method.

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