On October 1, 2024, Marigold Auto Rentals purchases a new automobile for $29,700 to add to its fleet of rental cars. The automobiles are rented out on a short-term basis with rental fees calculated based on distance driven by the customer. Marigold's policy is to sell and replace a car after the earlier of three years, or 80,000 kilometres. The average selling price of the used cars is $8,900. This particular car was driven 8,900 km in 2024, 38,600 km in 2025, and 19,100 km in 2026. Calculate 2024 and 2025 depreciation expense under each of the following methods: (Round answers to 0 decimal places, e.g. 5,275.) Straight-line depreciation Diminishing-balance depreciation using a 40% rate Units-of-production depreciation $ 2024 2025
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- On June 1, 2022, City Car Sales sells a new car costing P4,726,400 for P6,804,000. A used car is accepted as a down payment, P960,000 beings allowed on the trade in. The used can be resold for P1,458,000 after reconditioning cost of P194,400. The company expects to make a 20% gross profit on the sale of used cars, Over the remainder of 2022, another P520,000 was collected on the contract. Expenses incurred related to the sales are P750,000. Calculate the net income for City Car Sales over the transactions mentioned above.Sandhill Co. purchases a new delivery truck for $78000. The sales taxes are $4400. The logo of the company is painted on the side of the truck for $1000. The truck’s annual license is $100. The truck undergoes safety testing for $240. What does Sandhill record as the cost of the new truck?On June 1, 2020, Mylene Company sells a new car costing P1,620,000 for P2,268,000. A used car is accepted as down payment, P432,000 being allowed on trade-in. The used car can be resold for P486,000 after reconditioning cost of P64,000. The company expects to make a 20% gross profit on the sale of the used cars. During the period, P270,000 was collected on the contract. How much is the realized gross profit in 2020?
- Leonard Co. sells $600,000 (cost $480,000) of vehicles to a local car dealer, Carlson Inc. The vehicles were ready to go when the contract was signed on May 31, 2021 and title passed to Carlson at that date. Carlson was undergoing a significant renovation to its dealership at the time and as a result, Carlson requested that Leonard retain the vehicles at its warehouse until July 15, 2021. Payment was made in full on June 30, 2021. At what date can Leonard Co. recognize the revenue relating to the sale of the vehicles?On October 1, 2019, Alharam sold and delivered 3 doors to a builder for $40,000. The builder plans to install it in one of its “Parade of Homes” houses. Alharam accepted a 5-year, zerointerest bearing note with face amount of $53,240. The doors have cost of $25,500. An interest rate of 10% is an appropriate market rate of interest for this customer. What's the entries of this transactionand i wana explain of the entriesLake Power Sports sells jet skis and other powered recreational equipment. Customers pay one-third of the sales price of a jet ski when they initially purchase the ski, and then pay another one-third each year for the next two years. Because Lake has little information about the ability to collect these receivables, it uses the installment sales method for revenue recognition. In 2020, Lake began operations and sold jet skis with a total price of $1,050,000 that cost Lake $525,000. Lake collected $350,000 in 2020, $350,000 in 2021, and $350,000 in 2022 associated with those sales. In 2021, Lake sold jet skis with a total price of $1,770,000 that cost Lake $1,062,000. Lake collected $590,000 in 2021, $525,000 in 2022, and $525,000 in 2023 associated with those sales. In 2023, Lake also repossessed $130,000 of jet skis that were sold in 2021. Those jet skis had a fair value of $48,750 at the time they were repossessed.Total cash collections on installment sales during 2021 would be:…
- Triton Limited purchases a new delivery truck for $80,000. The insurance cost during transit from the motor vehicle dealer to Triton is $3,000. The logo of the company is painted on the side of the truck for $500. The recurring annual truck registration is $700 and a 12 month accident insurance policy is $1,100. The truck undergoes the initial safety testing to make sure it is road worthy for the first time is $330. What does Triton Limited record as the cost of the new truck? Select the one correct answer: O $85,630. O $80,000. O $83,830. O $83,000.Rural Pizza bought a used Ford delivery van on January 2, 2021, for $20,000. The van was expected to remain in service for four years (45,000 miles). At the end of its useful life, Rural management estimated that the van's residual value would be $2,000. The van traveled 17,000 miles the first year, 18,000 miles the second year, 5,000 miles the third year, and 5,000 miles in the fourth year. 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 TotalWildhorse Co. purchases a new delivery van for $83000. The sales taxes are $5250. The logo of the company is painted on the side of the van for $1200. The van's annual license is $200. The van undergoes safety testing for $270. What does Wildhorse record as the cost of the new van? $88250. $89920. $89470. $89720.
- Carley Company purchases a new delivery truck for $45,000. The sales taxes are $3,000. The logo of the company is painted on the side of the truck for $1,200. The annual truck license is $120. The truck undergoes safety testing for $220. What does Carley record as the cost of the new truck?Deluxe Pizza bought a used Ford delivery van on January 2, 2021, for $20,200. The van was expected to remain in service for four years (92,500 miles). At the end of its useful life, Deluxe management estimated that the van's residual value would be $1,700. The van traveled 32,000 miles the first year, 21,000 miles the second year, 20,000 miles the third year, and 19,500 miles in the fourth year. 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 2021 Straight-Line 2022 2023 2024 Total Question ViewerLankford Corporation operates a retail computer store. To improve delivery services to customers, the company purchases four new trucks on April 1, 2020. The terms of acquisition for each truck are described below. Truck #1 has a list price of $37,500 and is acquired for a cash payment of $34,750. Truck #2 has a list price of $40,000 and is acquired for a down payment of $5,000 cash and a zero-interest-bearing note with a face amount of $35,000. The note is due April 1, 2021. Lankford would normally have to pay interest at a rate of 8% for such a borrowing, and the dealership has an incremental borrowing rate of 6%. Truck #3 has a list price of $40,000. It is acquired in exchange for a computer system that Lankford carries in inventory. The computer system cost $30,000 and is normally sold by Lankford for $38,000. Lankford uses a perpetual inventory system. T ruck #4 has a list price of $35,000. It is acquired in exchange for 1,000 shares of common stock in Lankford Corporation.…