Number of Trucks to Be Estimated Residual Retired at Year-End Value per Truck Year $4,000 4,000 2,000 2020 2 2021 6 2022 8 2023 4 Cheadle actually retired the trucks according to the following schedule (assume each truck was retired at the beginning of the year): Number of Trucks Retired Total Proceeds from Retirements Year $ 4,000 11,000 19,000 6,000 4,000 1,000 2020 1 2021 3 2022 6 2023 5 2024 3 2025 2

Number of Trucks to Be Estimated Residual Retired at Year-End Value per Truck Year $4,000 4,000 2,000 2020 2 2021 6 2022 8 2023 4 Cheadle actually retired the trucks according to the following schedule (assume each truck was retired at the beginning of the year): Number of Trucks Retired Total Proceeds from Retirements Year $ 4,000 11,000 19,000 6,000 4,000 1,000 2020 1 2021 3 2022 6 2023 5 2024 3 2025 2

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 5P: Group and Composite Depreciation Chcadle Company purchased a fleet of 20 delivery trucks for 8,000...

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Prior to adjustment at the end of the year, the balance in Trucks is $405,400 and the balance in Accumulated Depreciation-Trucks is $120,280. Details of the subsidiary ledger are as follows: Accumulated Miles Estimated Estimated Depreciation Operated Truck Residual Useful at Beginning During No. Cost Value Life of Year Year 1 $84,500 $12,675 210,000 miles 31,500 miles 2 119,900 14,388 270,000 $23,980 27,000 3 93,500 13,090 207,000 $74,800 20,700 4 107,500 12,900 360,000 $21,500 43,200 a. Determine for each truck the depreciation rate per mile and the amount to be credited to the accumulated depreciation section of each subsidiary account for the miles operated during the current year. Keep in mind that the depreciation taken cannot reduce the book value of the truck below its residual value. Round the rate per mile to two decimal places. Enter all values as positive amounts. Credit to Rate per Mile Miles Accumulated Truck No. (in cents) Operated Depreciation 1 2$ 31,500 2 27,000 2$…
The plant and equipment account in the records of a company for the year ended 31 December 20X6 is shown below. PLANT AND EQUIPMENT - COST 20X6 $ 20X6 $ 1 Jan Balance 960,000 1 July Cash 48,000 30 Sept Transfer disposal account 84,000 31 Dec Balance 924,000 1,008,000 1,008,000 The company's policy is to charge depreciation on the straight line basis at 20% per year, with proportionate depreciation in the years of purchase and sale. What should be the charge for depreciation in the company's statement of profit or loss for the year ended 31 December 20X6? A $184,800 B $192,600 C $191,400 D $184,200
The plant and machinery at cost account of a business for the year ended 30 June 20X4 was as follows: PLANT AND MACHINERY – COST $ $ 20X3 20X3 1 Jul Balance 240,000 30 Sep Transfer disposal account 60,000 20X4 20X4 1 Jan Cash – purchase of plant 160,000 30 Jun Balance 340,000 400,000 400,000 The company's policy is to charge depreciation at 20% per year on the reducing balance basis, with proportionate depreciation in the years of purchase and disposal. What should be the depreciation charge for the year ended 30 June 20X4? A $68,000 B $64,000 C $61,000 D $55,000
The plant and equipment account in the records of a company for the year ended 31 December 20X6 is shown below. PLANT AND EQUIPMENT - COST 20X6 $ 20X6 $ 1 Jan Balance 960,000 1 July Cash 48,000 30 Sept Transfer disposal account 84,000 31 Dec Balance 924,000 1,008,000 1,008,000 The company's policy is to charge depreciation on the straight line basis at 20% per year, with proportionate depreciation in the years of purchase and sale. What should be the charge for depreciation in the company's statement of profit or loss for the year ended 31 December 20X6?
A Initial Cost + Installation $25,000 $15,000 Uniform end of year maintenance $2,000 $4,000 Overhaul, end of 3rd year $3,500 Salvage value $3,000 Service Lifetime 4 уrs 6 yrs Calculate the capitalized cost
The plant and machinery at cost account of a business for the year ended 30 June 20X4 was as follows: PLANT AND MACHINERY – COST $ 20X3 1 Jul Balance 20X4 1 Jan Cash – purchase of plant 20X3 240,000 30 Sep Transfer disposal account 60,000 20X4 160,000 30 Jun Balance 400,000 340,000 400,000 The company's policy is to charge depreciation at 20% per year on the straight line basis, with proportionate depreciation in the years of purchase and disposal. What should be the depreciation charge for the year ended 30 June 20X4?
Entries for Sale of Fixed Asset Equipment acquired on January 8 at a cost of $151,850 has an estimated useful life of 17 years, has an estimated residual value of $7,350, and is depreciated by the straight-line method. a. What was the book value of the equipment at December 31 the end of the fourth year?$fill in the blank f27e84fc8020072_1 Feedback Book value is the initial cost of the fixed asset minus the accumulated depreciation. b. Assume that the equipment was sold on April 1 of the fifth year for $110,335. 1. Journalize the entry to record depreciation for the three months until the sale date. If an amount box does not require an entry, leave it blank. Round your answers to the nearest whole dollar if required. Depreciation Expense-Equipment Depreciation Expense-Equipment Accumulated Depreciation-Equipment Accumulated Depreciation-Equipment Feedback The depreciation account of the fixed asset being…
rior to adjustment at the end of the year, the balance in Trucks is $423,500 and the balance in Accumulated Depreciation-Trucks is $127,800. Details of the subsidiary ledger are as follows: Accumulated Miles Estimated Estimated Depreclation at Beginning Operated During Truck Residual Useful No. Cost Value Life of Year Year $86,000 $12,900 220,000 miles 33,000 miles 21 114,500 13,740 240,000 $22,900 24,000 3 100,500 14,070 216,000 80,400 21,600 4 122,500 14,700 410,000 24,500 49,200 a. Determine for each truck the depreciation rate per mile and the amount to be credited to the accumulated depreciation section of each subsidiary account for the miles operated during the current year. Keep in mind that the depreciation taken cannot reduce the book value of the truck below its residual value. Round the rate per mile to two decimal places. Credit to Rate per Mile Miles Accumulated Truck No. (In cents) Operated Depreclation 1. S. 33,000 2. 24,000 21,600 4. 49,200 Total S. 3.
What is the most appropriate Analysis Period for the four different alternatives shown below? Item First Cost Uniform Annual Benefit Salvage Value Useful Life in Years Machine 1 $1,244,565 $273,804 $124,456 12 Machine 2 $2,297,397 $413,531 $229,740 20 d. 60 years e. 12 years Machine 3 $8,585,814 $1,416,659 $858,581 60 Machine 4 $3,737,193 $672,695 $373,719 30 Incremental Analysis (AIRR) b. 12 years for Machine 1; 20 years for Machine 2; 60 years for Machine 3; and 30 years for Machine 4 c. The average of the useful lives of the different alternatives, in this case, 30.5 years
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Depreciation by units-of-activity method Prior to adjustment at the end of the year, the balance in Trucks is $415,000 and the balance in Accumulated Depreciation-Trucks is $124,000. Details of the subsidiary ledger are as follows: Truck No. 1 2 3 4 Truck No. 1 2 3 Total Cost Feedback $77,000 119,000 94,000 125,000 Estimated Residual Value $11,550 14,280 13,160 15,000 a. Determine for each truck the depreciation rate per mile and the amount to be credited to the accumulated depreciation section of each subsidiary account for the miles operated during the current year. Keep in mind that the depreciation taken cannot reduce the book value of the truck below its residual value. Round the rate per mile to two decimal places. Enter all values as positive amounts. 0.28 0.26 ✔ 0.37 ✔ Estimated Useful Life Rate per Mile (in cents) Miles Operated 0.28 ✓ 230,000 miles 400,000 miles 220,000 miles 390,000 miles 34,500 40,000 22,000 46,800 Accumulated Depreciation at Beginning of Year $23,800…