College Accounting (Book Only): A Career Approach
13th Edition
ISBN: 9781337280570
Author: Scott, Cathy J.
Publisher: South-Western College Pub
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Chapter A, Problem 2P
Use the information in Problem A-1 to solve this problem. Assume the delivery van is expected to have a useful life of 100,000 miles (Year 1, 40,000 miles; Year 2, 30,000 miles; Year 3, 20,000 miles; Year 4, 10,000 miles).
Required
Prepare a schedule of
Check Figure
Year 3 depreciation, $3,200
PROBLEM A-1 A delivery van was bought for $18,000. The estimated life of the van is four years. The trade-in value at the end of four years is estimated to be $2,000.
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Students have asked these similar questions
Engineering Economy, Chapter 16:
Depreciation Methods
The manager of a Glidden Paint
manufacturing plant is planning to use SL,
DDB or MACRS to compare the total
depreciation of the first 3 years for a recently
purchased mixer that has a first cost of
300,000 QAR, a 5-year recovery period, and a
60,000 QAR salvage value. Find total
depreciation of the first three years and the
book value at year 3 using SL, DDB and
MACRS.
Assume that a machine costing $120,000 and having a useful life of 10 years (with 10
salvage value).
a. Compute the depreciation expense in year 5 by using straight-line
col to ensrla 15
b. Compute the depreciation expense in year 7 by using sum-of-the-years' digits
c. Compute the depreciation expense in year 3 by using double-declining method
Question
Mastery Problem: Long-Term Assets: Fixed and Intangible
Patterson Planning Corp.,
You have been hired by Patterson Planning Corp., an events planning company that recently had a fire in which some of the accounting records were damaged.
In reviewing the fixed asset records, you find three depreciation schedules that are not labeled. They are listed in the following table. One of the assets has a depreciation rate of $4.40 per hour.
Year
Schedule A
Schedule B
Schedule C
1
$10,000
$10,125
$8,800
2
6,000
13,500
6,600
3
3,600
13,500
7,480
4
2,160
13,500
6,600
5
740
3,375
4,400
6
7,040
7
4,840
8
Total
$22,500
$54,000
$45,760
Depreciation
1. Determine which depreciation method is shown in each schedule on the Patterson Planning Corp. panel. Then match each schedule to the asset description that best characterizes the type of assets often…
Chapter A Solutions
College Accounting (Book Only): A Career Approach
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- Use the information in Problem A-1 to solve this problem. Required Prepare a schedule of depreciation using the double-declining-balance method. PROBLEM A-1 A delivery van was bought for 18,000. The estimated life of the van is four years. The trade-in value at the end of four years is estimated to be 2,000. Check Figure Year 2 depreciation, 4,500arrow_forwardUse the information in Problem A-1 to solve this problem. Assume that the van is five-year property for tax purposes. Required Prepare a schedule of depreciation under MACRS. Round figures to the nearest whole dollar. PROBLEM A-1 A delivery van was bought for 18,000. The estimated life of the van is four years. The trade-in value at the end of four years is estimated to be 2,000. Check Figure Year 3 depreciation, 3,456arrow_forwardQuestion15 Construct a depreciation schedule using the straight line method for a new lorry that costs $80,000 and has a salvage value of $8,000 at the end of 6 years.arrow_forward
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