Exercise 9-5Yello Bus Lines uses the units-of-activity method in depreciating its buses. One bus was purchased on January 1, 2017, at a cost of $299,818. Over its 4-year useful life, the bus is expected to be driven 190,600 miles. Salvage value is expected to be $8,200.Compute the depreciable cost per unit. (Round answer to 2 decimal places, e.g. 0.50.)Depreciation cost per unitsLINK TO TEXTYear2017Prepare a depreciation schedule assuming actual mileage was: 2017, 48,500; 2018, 55,000; 2019, 51,000; and 2020, 36,000. (Round cost per unit to 2 decimal places, e.g. 15.25 and all other answers to 0 decimal places, e.g. 5,275.)ComputationEnd of Year201820192020per mileUnits ofActivityDepreciationCost/UnitVIDEO: APPLIED SKILLSAnnualDepreciationExpenseAccumulatedDepreciationBookValue

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Description: Exercise 9-5Yello Bus Lines uses the units-of-activity method in depreciating its buses. One bus was purchased on January 1, 2017, at a cost of $299,818. Over its 4-year useful life, the bus is expected to be driven 190,600 miles. Salvage value is e

The Depreciated cost of a fixed asset is its value less the total cumulative depreciation that has…

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Exercise 9-5 Yello Bus Lines uses the units-of-activity method in depreciating its buses. One bus was purchased on January 1, 2017, at a cost of $299.818. Over its 4-year useful life, the bus is expected to be driven 190,600 miles. Salvage value is expected to be $8,200. Compute the depreciable cost per unit. (Round answer to 2 decimal places, e.g. 0.50.) Depreciation cost per unit LINK TO TEXT Year 2017 Prepare a depreciation schedule assuming actual mileage was: 2017, 48,600; 2018, 55,000; 2019, 51,000; and 2020, 36,000. (Round cost per unit to 2 decimal places, e.g. 15.25 and all other answers to 0 decimal places, e.g. 5,275.) End of Year 2018 2019 2020 Units of Activity per mile Computation Depreciation Cost/Unit VIDEO: APPLIED SKILLS Annual Depreciation Expense Accumulated Depreciation Book Value

Exercise 9-5 Yello Bus Lines uses the units-of-activity method in depreciating its buses. One bus was purchased on January 1, 2017, at a cost of $299.818. Over its 4-year useful life, the bus is expected to be driven 190,600 miles. Salvage value is expected to be $8,200. Compute the depreciable cost per unit. (Round answer to 2 decimal places, e.g. 0.50.) Depreciation cost per unit LINK TO TEXT Year 2017 Prepare a depreciation schedule assuming actual mileage was: 2017, 48,600; 2018, 55,000; 2019, 51,000; and 2020, 36,000. (Round cost per unit to 2 decimal places, e.g. 15.25 and all other answers to 0 decimal places, e.g. 5,275.) End of Year 2018 2019 2020 Units of Activity per mile Computation Depreciation Cost/Unit VIDEO: APPLIED SKILLS Annual Depreciation Expense Accumulated Depreciation Book Value

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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Exercise 9-5 Yello Bus Lines uses the units-of-activity method in depreciating its buses. One bus was purchased on January 1, 2017, at a cost of $299,818. Over its 4-year useful life, the bus is expected to be driven 190,600 miles. Salvage value is expected to be Compute the depreciable cost per unit. (Round answer to 2 decimal places, e.g. 0.50.) Depreciation cost per unit $ LINK TO TEXT Year Prepare a depreciation schedule assuming actual mileage was: 2017, 48,600; 2018, 55,000; 2019, 51,000; and 2020, 36,000. (Round cost per unit to 2 decimal places, e.g. 15.25 and all other answers to 0 decimal places, e.g. 5,275.) End of Year 2017 2018 2019 2020 Units of Activity per mile Computation Depreciation Cost/Unit $ VIDEO: APPLIED SKILLS Annual Depreciation Expense Accumulated Depreciation Book Value
/ On 1/1/2014 Baghdad company purchased a machine for $ 1000,000. They have estimated the useful life 4 years with 95,000 estimate salvage value. Require: compute the deprecation by using Declining Balance Method (using schedule that show the computing).
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.
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 125,000 miles. Montello uses the units-of-production depreciation method, and in year one the company expects the truck to be driven for 26,000 miles; in year two, 30,000 miles; and in year three, 40,000 miles. Consider how the purchase of the truck will impact Montellos depreciation expense each year and what the trucks book value will be each year after depreciation expense is recorded.
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Problem 9-08A (Part Level Submission) In recent years, Sunland Company has purchased three machines. Because of frequent employee turnover in the accounting department, a different accountant was in charge of selecting the depreciation method for each machine, and various methods have been used. Information concerning the machines is summarized in the table below. Salvage Value Useful Life Depreciation Method Machine Acquired Cost (in years) Jan. 1, 2020 $125,000 $37,000 Straight-line 2. July 1, 2021 77,000 10,600 Declining-balance 3 Nov. 1, 2021 77,100 8,100 Units-of-activity For the declining-balance method, Sunland Company uses the double-declining rate. For the units-of-activity method, total machine hours are expected to be 34,500. Actual hours of use in the first 3 years were: 2021, 840; 2022, 3,800; and 2023, 5,500. (a) Compute the amount of accumulated depreciation on each machine at December 31, 2023. MACHINE 1 MACHINE 2 MACHINE 3 Accumulated Depreciation at December 31 %24 8.…
E9-3A Depreciation Methods A delivery truck costing $20, 000 is expected to have a $2,000 salvage value at the end of its useful life of four years or 100,000 miles. Assume that the truck was purchased on January 2. Calculate the depreciation expense for the second year using each of the following depreciation methods: a) straight-line, b) double-declining balance, and c) units-of-production. (Assume that the truck was driven 30, 000 miles in the second year.)
12-2 Suds-n- dogs just purchased new automated wiener handling equipment for $12,000. The salvage value of the equipment is anticipated to be $1,200 at the end of its five-year life. Using MACRS, determinate the depreciation schedule.
ABC Corp uses the double declining balance method to depreciate a machine purchased on June 30, 20X1 for P20,000. Estimated scrap value is P2,000 and estimated useful life is 4 years. How much is the depreciation expense at Dec 31, 20X2?
Q.5 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 depreciation schedule, beginning with calendar year 2009, under each of the methods listed below (assume that the half-year convention is used): Straight-line. 200 percent declining-balance. 150 percent declining-balance (not switching to straight-line).
Comparison of Depreciation Methods P7. Bao Wao Designs Inc. purchased a computerized blueprint printer that will assist in the design and display of plans for factory layouts. The cost of the printer was $22,500, and its expected useful life is four years. The company can probably sell the printer for $2,500 at the end of four years. The printer is expected to last 6,000 hours. It was used 1,200 hours in year 1; 1,800 hours in year 2; 2,400 hours in year 3; and 600 hours in year 4. Required Compute the annual depreciation and carrying value for the new blueprint printer for each of the four years (round to the nearest dollar where necessary) under each of the following methods: (a) straight-line, (b) production, and (c) double-declining balance. If the printer is sold for $12,000 after year 2, what would be the gain or loss under each method? Accounting Connection ▶ What conclusions can you…