Current Attempt in Progress Wildhorse Taxi Service uses the units-of-activity method in computing depreciation on its taxicabs. Each cab is expected to be driven 160,000 miles. Taxi 10 cost $31,000 and is expected to have a salvage value of $600. Taxi 10 was driven 30,000 miles in 2026 and 32,000 miles in 2027. (a1) Calculate depreciable cost per mile using units-of-activity method. (Round answer to 2 decimal places, e.g. 0.50.) Depreciable cost $ per mile
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- Use the information in Problem A-1 to solve this problem. Assume the delivery van is expected to have a useful life of 100,000 miles (Year 1, 40,000 miles; Year 2, 30,000 miles; Year 3, 20,000 miles; Year 4, 10,000 miles). Required Prepare a schedule of depreciation using the units-of-production method. Check Figure Year 3 depreciation, 3,200 PROBLEM A-1 A delivery van was bought for 18,000. The estimated life of the van is four years. The trade-in value at the end of four years is estimated to be 2,000.Sheffield Taxi Service uses the units-of-activity method in computing depreciation on its taxicabs. Each cab is expected to be driven 152,000 miles. Taxi no. 10 cost $49,520 and is expected to have a salvage value of $2,400. Taxi no. 10 is driven 35,200 miles in year 1 and 25,300 miles in year 2. Calculate depreciation cost per mile using unit-of-activity method. (Round answer to 2 decimal places, e.g. 0.50.) Depreciation cost $ per mile Compute the depreciation for each year. (Round answers to 2 decimal places, e.g. 2,125.50.) Year 1 Year 2 Depreciation $ $Blue Spruce Taxi Service uses the units-of-activity method in computing depreciation on its taxicabs. Each cab is expected to be driven 140,000 miles. Taxi no. 10 cost $45,000 and is expected to have a salvage value of $200. Taxi no. 10 is driven 28,000 miles in year 1 and 18,400 miles in year 2. a. Calculate depreciation cost per mile using unit-of-activity method. (Round answer to 2 decimal places) b. Compute the depreciation for each year. (Round answers to 2 decimal places)
- Whispering Winds Corp. purchased a delivery truck for $34,000 on January 1, 2022. The truck has an expected salvage value of $5,000, and is expected to be driven 100,000 miles over its estimated useful life of 8 years. Actual miles driven were 16,100 in 2022 and 11,700 in 2023. (a1) Your answer is correct. Calculate depreciable cost per mile under units-of-activity method. (Round answer to 2 decimal places, e.g. 0.50.) Depreciable cost .29 per mile eTextbook and Media List of Accounts Attempts: unlimited %24A utility vehicle purchased by Knox industries should last 110,000 miles .  the accusation cost was 21,200 and the salvage value is 1,913. Using the units of production depreciation method given the annual usage information calculate the accumulated depreciation at the end of year to round your depreciation per unit to three decimal places run your answer to the nearest cent.  year one 22,029.  Your two 22,724.  Year 3 23,420. year 4 23,188.  Answer key A.3,976.70 B.4,098.50 C.7,831.78 D.13,368.23 Calculate depreciation in the following case La Rosa del Monte has a moving truck that performs large removals in the Miami area and at the end of the year has a balance of $88,250 with a cumulative depreciation of $12,230. It also has a small truck that it uses in the Orlando area for $43,760 with a cumulative depreciation of $7,120. Determine what the depreciation is for each truck using the depreciation by units of activity method. Truck Cost Estimated residual value Estimated service lifetime Accumulated depreciation at the beginning of the year Miles used in the year Large truck $88,250 $17,000 230,000 millas $12,230 32,000 Small truck 43,760 6,500 280,000 millas 7,120 27,300
- Hebron Company uses the units-of-activity method in computing depreciation. A new plant asset is purchased for $48,000 that will produce an estimated 200,000 units over its useful life. Estimated salvage value at the end of its useful life is $4,000. What is the depreciation cost per unit? * $2.20 O $2.40 O $.22 O $.24 Other:Determine ownership depreciation cost per hour for a D9N Caterpillar dozer with the following assumptions: • Engine - 370 hp • Overall cost of Money - 6% (i) • Useful life-5 years (n) • Hours used per year - 2200 Initial Cost - $400,000 (P) Cost of tires - $42,000 (for this formula you need to subtract the cost of the tires from the initial cost) • Estimated Salvage Value - $40,000 (F) or [(S) for AAI formula] ● ● NOTE: Use the average of the Time Value Method and the Average Annual Investment (AAI) Method to determine the answer. STEP 1-Time Value Method Formulas: (USCRF) A₂ = P (USSFF) ANSWER: Ownership Depreciation = AAI: Af= F ((1+0³-1] STEP 2 - Average Annual Investment Method Cost of Money = i (1+i)n (1+i)n-1 Ownership Depreciation = Straight-Line Depreciation + Cost of Money Cost of Money is a function of the Average Annual Investment (AAI). Average AAI = Time Value Method AAI Method • Straight-Line Depreciation: AAI = $ AAI x (i) 2200 • Ownership Depreciation Ap-Af 2200 hr/yr…The pertinent information about a piece of construction equipment follows: cost $180,000 Estimated Useful Life 200,000 Miles Residual (salvage) value $20,000 Placed in service 1/2/2015 Year 1 output = 37,000 miles Year 2 output= 51000 miles Compute the first two years depreciation using the units of output method.
- Using Excel to Calculate Double-Diminishing-Balance Depreciation PROBLEM Audio Systems purchased a delivery truck on January 1, 2024. The company has a December 31 year end. Additional information concerning the truck follows. Purchase price of truck Student Work Area Required: Provide input into cells shaded in yellow in this template. Use mathematical formulas with cell references to the Problem and work area as indicated. Using the diminishing-balance method and assuming the depreciation rate is equal to double the straight-line rate, calculate the depreciation: Residual value Useful life $80,000 8,000 4 years a. For each year of the truck's life Rate January 1 Carrying Amount Depreciation December 31 Carrying Rate Expense Amount 2021 0% b. 2022 2023 2024 0% 0% 0% In total over the truck's life TotalCan you show me how to do this one step by step? 11. DEF, Inc. purchased slot machines at the beginning of 2018 for $20,000. The machines have an estimated residual value of $2,000 and an estimated life of five years or 20,000 hours of operation. A. Using straight line depreciation, calculate the total accumulated depreciation at 12/31/19. B. Using units of production depreciation, calculate depreciation expense for 2018. Assume the machines operate at 5,000 ours in 2018. C. Using double declining balance depreciation, calculate the book value of the machine at 12/31/19.Calculate the total cost, total depreciation, and annual depreciation (in $) for the following assets by using the straight-line method. (Round your answers to the nearest cent.) Estimated Shipping Charges Setup Charges Total Salvage Value Total Annual Useful Life (years) Cost Cost Depreciation Depreciation $88,700 $625 $2,500 $7,000