On July 1, 2020, Molly's Greenhouse purchased a new delivery truck for $96,000. She paid a $20,000 cash and signed a promissory note for the remainder. Molly estimates that the delivery truck will have a five-year useful life, or 225,000 kilometres and a residual value of $6,000. Molly's Greenhouse has a December 31 year end. Molly drove the truck 16.000 km in 2020: 45,000 km in 2021 47,000 in 2022: 44,000 in 2023, and 74,000 in 2024. Prepare depreciation schedules for the life of the asset under the following depreciation methods: 1. 2 straight-line method double-diminishing-balance, and 3. units-of-production method (Round depreciable amount per unit to 2 decimal places, es 5.27 and the final answers to 0 decimal places, eg 5,276)

On July 1, 2020, Molly's Greenhouse purchased a new delivery truck for $96,000. She paid a $20,000 cash and signed a promissory note for the remainder. Molly estimates that the delivery truck will have a five-year useful life, or 225,000 kilometres and a residual value of $6,000. Molly's Greenhouse has a December 31 year end. Molly drove the truck 16.000 km in 2020: 45,000 km in 2021 47,000 in 2022: 44,000 in 2023, and 74,000 in 2024. Prepare depreciation schedules for the life of the asset under the following depreciation methods: 1. 2 straight-line method double-diminishing-balance, and 3. units-of-production method (Round depreciable amount per unit to 2 decimal places, es 5.27 and the final answers to 0 decimal places, eg 5,276)

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 7EB: Kenzie purchased a new 3-D printer for $450,000. Although this printer is expected to last for ten...

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