View Policies Current Attempt in Progress Pharoah Company purchased a delivery truck for $49,000 on January 1, 2022. The truck has an expected salvage value of $13,000, and is expected to be driven 100,000 miles over its estimated useful life of 10 years. Actual miles driven were 12,300 in 2022 and 13,200 in 2023. (a1) Calculate depreciable cost per mile under units-of-activity method. (Round answer to 2 decimal places, e.g. 0.50.)

View Policies Current Attempt in Progress Pharoah Company purchased a delivery truck for $49,000 on January 1, 2022. The truck has an expected salvage value of $13,000, and is expected to be driven 100,000 miles over its estimated useful life of 10 years. Actual miles driven were 12,300 in 2022 and 13,200 in 2023. (a1) Calculate depreciable cost per mile under units-of-activity method. (Round answer to 2 decimal places, e.g. 0.50.)

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 8PB: Montello Inc. purchases a delivery truck for $25,000. The truck has a salvage value of $6,000 and is...

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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 and in year one it expects to use the truck for 23,000 miles. Calculate the annual depreciation expense.
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View Policies Current Attempt in Progress Oriole uses the units-of-production method to calculate depreciation on its taxicabs. Each cab is expected to be driven 306,000 km over its life. Taxi 10 was purchased on March 1, 2020, for $31,140 and is expected to have a residual value of $540. Taxi 10 was driven 135,660 km in 2020 and 115,080 km in 2021. Oriole has a December 31 year end. Calculate the depreciation expense on Taxi 10 for 2020 and 2021. Year Depreciation expense 2020 2021 2$ eTextbook and Media Save for Later Attempts: 0 of 3 used Submit Answer
Current Attempt in Progress X Your answer is incorrect. Metlock Company purchased equipment for $285,600 on October 1, 2025. It is estimated that the equipment will have a useful life of 8 years and a salvage value of $12,000. Estimated production is 48,000 units and estimated working hours are 19,000. During 2025, Metlock uses the equipment for 530 hours and the equipment produces 1,100 units. Compute depreciation expense under each of the following methods. Metlock is on a calendar-year basis ending December 31. (Round rate per hour and rate per unit to 2 decimal places, e.g. 5.35 and final answers to O decimal places, e.g. 45,892.) (a) (b) (c) Straight-line method for 2025 (e) Activity method (units of output) for 2025 Activity method (working hours) for 2025 (d) Sum-of-the-years'-digits method for 2027 Double-declining-balance method for 2026 $ ta tA LA 8531 5.69 7615 51187 66797
View Policies Current Attempt in Progress The cost of equipment purchased by Swifty, Inc., on June 1, 2025, is $100,800. It is estimated that the machine will have a $8,400 salvage value at the end of its service life. Its service life is estimated at 7 years, its total working hours are estimated at 46,200, and its total production is estimated at 660,000 units. During 2025, the machine was operated 6,240 hours and produced 57,200 units. During 2026, the machine was operated 5,720 hours and produced 49,900 units. Compute depreciation expense on the machine for the year ending December 31, 2025, and the year ending December 31, 2026, using the following methods. (Round depreciation per unit to 2 decimal places, e.g. 15.25 and final answers to O decimal places, e.g. 45,892.) b. d. Straight-line Units-of-output Working hours Sum-of-the-years'-digits e. Double-declining-balance eTextbook and Media Save for Later $ $ $ $ $ Search 2025 $ $ $ -о-со CO 2026 Attempts: 0 of 3 used D Submit…
View Policies Current Attempt in Progress Ivanhoe Company purchased a new machine on October 1, 2022, at a cost of $68,220. The company estimated that the machine has a salvage value of $6,540. The machine is expected to be used for 70,400 working hours during its 6-year life. Compute the depreciation expense under the straight-line method for 2022 and 2023, assuming a December 31 year-end. (Round answers to 2 decimal places, eg 5,275.25) 2022 2023 The depreciation expense under the straight-line method $ eTextbook and Media Attempts: 0 of 3 used Submit Answer Save for Later
Show Attempt History Current Attempt in Progress Wildhorse Co. purchased equipment on March 31, 2021, at a cost of $264,000. Management is considering the merits of using the diminishing-balance or units-of-production method of depreciation instead of the straight-line method, which it currently uses for other equipment. The new equipment has an estimated residual value of $8,000 and an estimated useful life of either four years or 80,000 units. Demand for the products produced by the equipment is sporadic so the equipment will be used more in some years than in others. Assume the equipment produces the following number of units each year: 14,600 units in 2021; 20,600 units in 2022; 19,800 units in 2023; 20,000 units in 2024; and 5,000 units in 2025. Wildhorse has a December 31 year end. 6 (a) - Your answer is partially correct. Prepare separate depreciation schedules for the life of the equipment using: (Round depreciation per unit to 2 decimal places, e.g. 5.28 and final answers to O…
View Policies Current Attempt in Progress On October 1, 2022, Cullumber Manufacturing Company purchased a piece of high-tech equipment for $90,500 cash. Cullumber estimated the equipment would have a 8-year useful life and a residual value of $8,900. The company uses straight-line depreciation and has a September 30 fiscal year end. On October 1, 2024, Cullumber paid $15,100 cash to upgrade the equipment. It is expected that the upgrade will significantly reduce the operating costs of the equipment. Cullumber also reviewed the equipment's expected useful life and estimated that, due to changing technology, the equipment's total expected useful life will be 6 years and its residual value will be $4,600. Calculate the annual depreciation expense for the first two years of the equipment's life. Annual depreciation expense $ List of Accounts Calculate the carrying amount of the equipment at September 30, 2024. Carrying amount List of Accounts per year $
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Please reject this question E10-6 Kelm Company purchased a new machineon October 1,2008, at a cost of $120.000. the Company estimatedthat the machine will have a salvage value of $12,000. The machine k pected to be used for 10,000 working hours duringíts 5-year life. Instructions Compute the depreciation expense under the following methods for the year indicated. (a) Straight-Ime for 2008. (b) Upils-of-activity for 2008, assuming machine usage was 1,700 hours (c) Đeclining-balance using double the straight-line rate for 2008 and 2009.