Units-of-activity Depreciation A truck acquired at a cost of $150,000 has an estimated residual value of $7,500, has an estimated useful life of 57,000 miles, and was driven 4,000 miles during the year. Determine the following. If required, round your answer for the depreciation rate to two decimal places. (a) The depreciable cost $_ (b) The depreciation rate $_Per mile (c) The units-of-activity depreciation for the year $

Units-of-activity Depreciation A truck acquired at a cost of $150,000 has an estimated residual value of $7,500, has an estimated useful life of 57,000 miles, and was driven 4,000 miles during the year. Determine the following. If required, round your answer for the depreciation rate to two decimal places. (a) The depreciable cost $_ (b) The depreciation rate $_Per mile (c) The units-of-activity depreciation for the year $

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Description: Please do not give solution in image format thanku Units-of-activity DepreciationA truck acquired at a cost of $150,000has an estimated residual value of$7,500, has an estimated useful life of57,000 miles, and was driven 4,000miles during the year. D

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 4EA: Montello Inc. purchases a delivery truck for $15,000. The truck has a salvage value of $3,000 and is...

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When depreciation is recorded each period, what account is debited? a. Depreciation Expense b. Cash c. Accumulated Depreciation d. The fixed asset account involved Use the following information for Multiple-Choice Questions 7-4 through 7-6: Cox Inc. acquired a machine for on January 1, 2019. The machine has a salvage value of $20,000 and a 5-year useful life. Cox expects the machine to run for 15,000 machine hours. The machine was actually used for 4,200 hours in 2019 and 3,450 hours in 2020.
A machine costing 350,000 has a salvage value of 15,000 and an estimated life of three years. Prepare depreciation schedules reporting the depreciation expense, accumulated depreciation, and book value of the machine for each year under the double-declining-balance and sum-of-the-years-digits methods. For the double-declining-balance method, round the depreciation rate to two decimal places.
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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 eight years. Montello uses the straight-line depreciation method. Calculate the annual depreciation expense.