Katie, your Accounting Manager, has asked you to calculate the depreciation for the new company car. the new car was purchased on June 1, 2018. • The purchase price was $12,600 and has useful lives of 3 years. • The salvage or residual amount is 10% of the purchase price. • It was estimated that the company car would be driven a total of 93,000 miles. • In year 1 the car was driven 48,900 miles, in year 2 the car was driven 35,180 miles and in year 3 the car was driven 12,300 miles.

Katie, your Accounting Manager, has asked you to calculate the depreciation for the new company car. the new car was purchased on June 1, 2018. • The purchase price was $12,600 and has useful lives of 3 years. • The salvage or residual amount is 10% of the purchase price. • It was estimated that the company car would be driven a total of 93,000 miles. • In year 1 the car was driven 48,900 miles, in year 2 the car was driven 35,180 miles and in year 3 the car was driven 12,300 miles.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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