QUESTION 4Uber Inc purchased a car for $24,200. The car has a salvage value of $3,000 and is estimated to be in use for 100,000 miles. What is the depreciationexpense for Year 2 assuming mileage used in year 1 was 18,330, year 2 was 17,750, and year 3 was 20,790? S

Depreciation is the allocation of cost of asset over the useful life of the asset. It can be charged…

Answered: QUESTION 4 Uber Inc purchased a car for…

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...

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(Appendix 11.1) Auburn Company purchased an asset on January 1, Year 1, for 150,000. The asset has a MACRS life of 7 years. The residual value of the asset is 35,000. Calculate the depreciation expense for Year 1 and Year 2 using MACRS.
(Appendix 11.1) Depreciation for Financial Statements and Income Tax Purposes Dinkle Company purchased equipment for 50,000. The equipment has an estimated residual value of 5,000 and an expected useful life of 10 years. Dinkle uses straight-line depreciation for its financial statements. Required: What is the difference between the companys income before taxes reported on its financial statements and the taxable income reported on its tax return in each of the first 2 years of the assets life if the asset was purchased on January 2, 2019, and its MACRS life is 5 years?
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.
3. 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. Calculate the depreciation expense for years 1 and 2 assuming the truck was driven 23,000 miles in year 1 and 26,000 miles in year 2.
Question 2 Kenny Company purchased a new truck on January 1, 2010, at a cost of $150,000. Over its 4-year usefullife, the truck is expected to be driven 100,000 miles. Salvage value is expected to be $5,000. Actualmileage was: for year 2010, 25,000 miles; for year 2011, 33,000 miles; for year 2012, 26,000 miles; andfor year 2013, 16,000 miles. Required:Prepare depreciation schedules for the following methodsa) Double Declining Balance Method using double the straight-line rateb) Units-Of-Activity Method
QUESTION 4 Baxter Co purchased an asset for $100,000 on 1.1.X1. It had an estimated useful life of 5 years and it was depreciated using the straight line method. On 1.1.X3 Baxter Co revised the remaining estimated useful life to 8 years. What is the carrying amount of the asset at 31.12.X3?
Question 1 A. Caro Inc. purchases a delivery truck for $18,000. Thetruck has a salvage value of $4,000 and is expected to be driven for 124,000 miles. Montello uses the units-of-production depreciation method and in year one it expects to use the truck for 24,000 miles. Calculate the annual depreciation expense. B. A $40,000, three-month, 5% note payable was issued on December 1, 2016. What is the amount of accrued interest on December 31, 2016? C. Barter Inc. issued bonds with a $400,000 face value, 10% interest rate, and a 4-year term on July 1, 2020, and received $440,000. Interest is payable semi-annually. The premium is amortized using the straight-line method. Prepare journal entries for the following transactions. 1) July 1, 2020: entry to record issuing the bonds 2) Dec. 31, 2020: entry to record payment of interest to bondholders 3) Dec. 31, 2020: entry to record amortization of premium Question 2 Autumn Corporation was organized in July. It is authorized to issue…
MODULE 5 DEPRECIATION With the following information please answer the following questions and journalize the transaction. What is the amount of depreciation at the end of the 3rd year? What is the Book Value at the end of the 3rd year? 1) Company has owned machine for 3 years 2) It has been depreciated using the straight line method 3) Original cost was $980000 4) Salvage is estimated at 6,000 5) Life of 8 years
Question2): Millar, Inc. purchased a truck to use for deliveries and is attempting to determine how much depreciation expense would be recognized under two different methods. The truck costs $200,000 and is expected to have a value of $40,000 at the end of its five year life. Prepare the depreciation schedule under each of the following Straight line method Double declining balance
Question 5 Sunland Co. purchased equipment for $587,000 which was estimated to have a useful life of 10 years with a salvage value of $11,000 at the end of that time. Depreciation has been entered for 7 years on a straight-line basis. In 2021, it is determined that the total estimated life should be 15 years with a salvage value of $4,600 at the end of that time. (a) Prepare the entry (if any) to correct the prior years’ depreciation. (b) Prepare the entry to record depreciation for 2021. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Question # 02 On July 1, 2001, Company Ronaldo purchased a building at $1,500,000.Building is depreciated using the straight-line depreciation method. Useful life of the building is 10 years. Salvage value of the building at the end of useful life is estimated as $110,000 what is the amount of depreciation expense for 2001? Depreciation expense each year with entries and also prepare depreciation schedule? The accounting year is from Jan – D
Q.6 Millar, Inc., purchased a truck to use for deliveries and is attempting to determine how much depreciation expense would be recognized under three different methods. The truck cost $20,000 and is expected to have a value of $4,000 at the end of its five-year life. The truck is expected to be used at the rate of 10,000 miles in the first year, 20,000 miles in the second and third years, and 15,000 miles in the fourth and fifth years. Instructions Determine the amount of depreciation expense that will be recognized under each of the following depreciation methods in the first and second years of the truck’s useful life. A full year’s depreciation will be recognized in the first year the truck is used. Straight-line. Double-declining-balance. Q.7 R&R, Inc., purchased a new machine on September 1, 2009, at a cost of $180,000. The machine’s estimated useful life at the time of the purchase was five years, and its residual value was $10,000. Instructions Prepare a complete…

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QUESTION 4 Uber Inc purchased a car for $24,200. The car has a salvage value of $3,000 and is estimated to be in use for 100,000 miles. What is the depreciati expense for Year 2 assuming mileage used in year 1 was 18,330, year 2 was 17,750, and year 3 was 20,790? $