Required: Calculate the annual depreciation for the years ended 31st December 2018, 2019 and 2020.  Show the following accounts for the three years Motor vehicles account.  Accumulated depreciation account

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 11E: On May 10, 2019, Horan Company purchased equipment for 25,000. The equipment has an estimated...
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A motor van was bought on 1st January 2018 for $10,000

The policy is to depreciate the motor van at 20% on straight line method

 

 

Required:

  1. Calculate the annual depreciation for the years ended 31st December 2018, 2019 and 2020. 
  2. Show the following accounts for the three years
    • Motor vehicles account. 
    • Accumulated depreciation account. 
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Section 179 Deduction and Modified Accelerated Cost Recovery System (MACRS) Depreciation
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