Whippet Bus Lines uses the units-of-activity method in depreciating its buses. One bus was purchased on January 1, 2017, at a cost of $131,000. Over its 4-year useful life, the bus is expected to be driven 240,000 miles. Salvage value is expected to be$7,400.Compute the depreciation cost per unit. (Round answer to 3 decimal places, e.g. 6.251)Depreciation cost per unit$4LINK TO TEXTVIDEO: APPLIED SKILLSSPrepare a depreciation schedule assuming actual mileage was: 2017, 52,400; 2018, 68,120; 2019, 53,710; and 2020, 35,370. (Round depreciation cost per unit to 3 decimal places, e.g. 0.125 and other answers to 0 decimal places, e.g. 125)ComputationEnd of YearUnits of Activity x Depreciation Cost/Unit = Annual Depreciation ExpenseAccumulated DepreciationYearsBook Value20172$$4$201820192020

Calculate the depreciation cost per unit as follows; Cost per unit = (Cost of asset - salvage…

Answered: Whippet Bus Lines uses the…

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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Devon Manufacturing Company purchased a new canning machine on July 1, 2015, for $190,000. The estimated salvage value is $15,000. The company uses units-of-production depreciation and estimates the machine will produce 125,000 units during its useful life. In 2015, the company manufactured 5,000 units after acquiring the machine. Depreciation expense for 2015 will be $7,600 $6,500 $14,000 $7,000
On January 2, 2011, Jansing Corporation acquired a new machine with an estimated useful life of five years. The cost of the equipment was $40,000 with a residual value of $5,000. Prepare a complete depreciation table under the two depreciation methods listed below. Straight-line. 200 percent declining-balance. 150 percent declining-balance with a switch to straight-line when it will maximize depreciation expense.
On January 1, 2010, Graham Company purchased a new machine for $2,100,000. The new machine has an estimated useful life of nine years and the residual value was estimated to be $75,000. Depreciation was computed on the sum-of-the-years'-digits method. What amount should be shown in Graham's balance sheet at December 31, 2011, net of accumulated depreciation, for this machine? OA. $1,244,250 OB. $1,695,000 OC $1,335,000 OD. $1,306,666
On July 1, 2015 , Smile Corporation purchased a machine at a cost of P300,000. This machine was estimated to have a useful life of 5-years with no salvage value and was depreciated using the straight-line method. On January 2, 2018. Youth determined that this machine could no longer work efficiently, that its value had been permanently impaired, and that P90,000 could be recovered over the remaining useful life of the machine. In its December 31, 2016 statement of financial position, how much should Smile report as carrying value of the machine?
Sandhill Company bought machinery on January 1, 2009, at a cost of $90,000. The machinery had an estimated life of 8 years and salvage value of $15,680. On January 1, 2014, Sandhill estimates that the machinery will have a life of only 2 more years from January 1, 2014, and the salvage value is now estimated to be $3,920. Sandhill uses straight-line depreciation. Compute the annual depreciation expense for 2014. Annual depreciation expense for 2014 $
On May 1, 2017 Merron Inc. sold a machine that it no longer had any use for. Merron sold the machine for $2,000 cash. The original cost of the machine was $32,000 and at December 31, 2016 the accumulated depreciation on the machine was $26,000. The machine had an original useful life of 10 years with zero estimated residual value. Merron uses the straight-line method to depreciate all of their machines. Required: Prepare the journal entries required for this transaction.
A company purchased a new machine on January 1, 2014. The supplier, "Forever supply" was paid $2,000 in cash. In addition, transportation and installation were $180 (paid in cash), legal costs associated with the asset were $20 (paid in cash). The machine has an estimated life of 5 years and an estimated salvage value of $300. It is company policy to use straight line depreciation for all of its machines. question: Assume the machine was sold on July 1, 2015 to "company A" for $1200 cash. Prepare the journal entry/entries to record this transaction. What was the gain/loss? Include the classification of the accounts and clearly label your debits and credits.
Linton Company purchased a delivery truck for $S34,000 on January 1, 2014. The truck has an expected salvage value of $2,000, and is expected to be driven 100,000 miles over its estimated useful life of 10 years. Actual miles driven were 19,000 in 2014 and 16,000 in 2015. Instructions a) Compute depreciation expense for 2014 and 2015 using (1) the straight-line method and (2) the units-of-activity method (b) Assume that Linton uses the straight-line method, Prepare the journal entry to record 2014 depreciation.
Can you show me how to do this one? 14. Assume that ABC Company purchased factory equipment on January 1, 2018, for $75,000. The equipment has an estimated life of five years and an estimated residual value of $6,000. ABC’s accountant is considering whether to use the straight-line or the units-of-production method to depreciate the asset. Because the company is beginning a new production process, the equipment will be used to produce 5,000 units in 2018, but production subsequent to 2018 will increase by 5,000 units each year. Calculate the depreciation expense, accumulated depreciation, and book value of the equipment under both methods for each of the five years of its life. Year Depreciation Accumulated Depreciation Book Value Year Depreciation Accumulated Depreciation Book Value
On January 1, 2007, Flax Co. purchased a machine for 528,000 and depreciated it by the straight-line method using an estimateduseful life of eight years with no salvage value. On January 1, 2010, Flax determined that the machine had a useful life of six years from the date of acquisition and will have a salvage value of 48,000. An accounting change was made in 2010 to reflect these additional data. The accumulated depreciation for this machine should have a balance at December 31, 2010 ofa.292,000b.308,000c.320,000d.352,000
On January 2, 2010, Sayre Company purchased a machine for $45,000. The machine has a five-year estimated useful life and a $3,000 estimated residual value. In addition, the company expects the machine to produce 200,000 units. Assuming that the machine produced 35,000 and 45,000 units during 2010 and 2011, respectively, complete the following chart. Depreciation Expense1st Year Depreciation Expense2nd Year Accumulated Depreciation Carrying (Book) Value Straight-Line Method Units-of-Production Method Double Declining Balance Method
On April 1, 2016, the KB Toy Company purchased equipment to be used in its manufacturing process. Theequipment cost $48,000, has an eight-year useful life, and has no residual value. The company uses the straightline depreciation method for all manufacturing equipment.On January 4, 2018, $12,350 was spent to repair the equipment and to add a feature that increased its operating efficiency. Of the total expenditure, $2,000 represented ordinary repairs and annual maintenance and$10,350 represented the cost of the new feature. In addition to increasing operating efficiency, the total usefullife of the equipment was extended to 10 years.Required:Prepare journal entries for the following:1. Depreciation for 2016 and 20172. The 2018 expenditure3. Depreciation for 2018

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