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Group and Composite Depreciation Chcadle Company purchased a fleet of 20 delivery trucks for $8,000 each on January 2, 2019. It decided to use composite depreciation on a straight-line basis and calculated the depreciation from the following schedule: Cheadle actually retired the trucks according to the following schedule (assume each truck was retired at the beginning of the year): Required: 1. Prepare the journal entries necessary to record the preceding events. 2. Assume that the company expected all the trucks to last 4 years and be retired for $1,600 each. Using group depreciation, prepare journal entries for all 6 years, assuming the company retired the trucks as shown by the latter schedule.

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Intermediate Accounting: Reporting...

3rd Edition
James M. Wahlen + 2 others
Publisher: Cengage Learning
ISBN: 9781337788281
BuyFind

Intermediate Accounting: Reporting...

3rd Edition
James M. Wahlen + 2 others
Publisher: Cengage Learning
ISBN: 9781337788281

Solutions

Chapter
Section
Chapter 11, Problem 5P
Textbook Problem

Group and Composite Depreciation Chcadle Company purchased a fleet of 20 delivery trucks for $8,000 each on January 2, 2019. It decided to use composite depreciation on a straight-line basis and calculated the depreciation from the following schedule:

Chapter 11, Problem 5P, Group and Composite Depreciation Chcadle Company purchased a fleet of 20 delivery trucks for 8,000 , example  1

Cheadle actually retired the trucks according to the following schedule (assume each truck was retired at the beginning of the year):

Chapter 11, Problem 5P, Group and Composite Depreciation Chcadle Company purchased a fleet of 20 delivery trucks for 8,000 , example  2

Required:

  1. 1. Prepare the journal entries necessary to record the preceding events.
  2. 2. Assume that the company expected all the trucks to last 4 years and be retired for $1,600 each. Using group depreciation, prepare journal entries for all 6 years, assuming the company retired the trucks as shown by the latter schedule.

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Chapter 11 Solutions

Intermediate Accounting: Reporting And Analysis
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