8. Calculate year 1 depreciation for the car purchase in #7, assuming a salvage value of $2500,a useful life of 5 years and 150,000 estimated useful life in miles - with 60,000 miles driven in year 1.Straight Line Depreciation:Declining balance depreciation:Units of Activity depreciation: 7. AB Company purchases a truck in the amount of $15,000. Additional costs include sales tax of $1500,painting of $2500, license of $150 and a 1 year auto insurance policy of $1200. Complete thejournal entry for the auto purchase.AccountDebitCreditTruck20,350Cash20,350

Name: 8. Calculate year 1 depreciation for the car purchase in #7, assuming
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Description: 8. Calculate year 1 depreciation for the car purchase in #7, assuming a salvage value of $2500,a useful life of 5 years and 150,000 estimated useful life in miles - with 60,000 miles driven in year 1.Straight Line Depreciation:Declining balance depr

Answer: Computation of Year 1 Straight line depreciation is as follows: Straight line depreciation…

Business

Accounting

8. Calculate year 1 depreciation for the car purchase in #7, assuming a salvage value of $2500, a useful life of 5 years and 150,000 estimated useful life in miles - with 60,000 miles driven in year 1. Straight Line Depreciation: Declining balance depreciation: Units of Activity depreciation:

8. Calculate year 1 depreciation for the car purchase in #7, assuming a salvage value of $2500, a useful life of 5 years and 150,000 estimated useful life in miles - with 60,000 miles driven in year 1. Straight Line Depreciation: Declining balance depreciation: Units of Activity depreciation:

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 7RE: At the end of Year 1, Herkimer Co. sells two laptops for 1,800 each. Based on the information in...

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At the end of Year 1, Herkimer Co. sells two laptops for 1,800 each. Based on the information in RE11-6 in Year 1, prepare the journal entries to record the purchase of the laptops, the depreciation on the laptops, and the sale of the laptops.
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