Unit-of-activity Method: Under this method of depreciation, the depreciation expense is calculated on the basis of units produced in a year. This method is suitable when a company has fluctuating productive rate. The formula to calculate the depreciation expense under this method is as follows: Depreciation per unit = Cost − Residual value Estimated units of useful life Depreciation Expense = Depreciation per unit × Usage the depreciable cost of the tractor.

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Answer 1

Question

Chapter 9, Problem 9.3APE

(a)

To determine

Unit-of-activity Method: Under this method of depreciation, the depreciation expense is calculated on the basis of units produced in a year. This method is suitable when a company has fluctuating productive rate. The formula to calculate the depreciation expense under this method is as follows:

Depreciation per unit = Cost−Residual valueEstimated units of useful life

Depreciation Expense = Depreciation per unit × Usage

the depreciable cost of the tractor.

(b)

To determine

the depreciation rate.

(c)

To determine

the units-of-activity depreciation for the year.

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Units-of-activity Depreciation A truck acquired at a cost of $515,000 has an estimated residual value of $27,500, has an estimated useful life of 65,000 miles, and was driven 6,500 miles during the year. Determine the following. If required, round your answer for the depreciation rate to two decimal places. (a) The depreciable cost (b) The depreciation rate (c) The units-of-activity depreciation for the year per mile

Units-of-Activity Depreciation A truck acquired at a cost of $305,000 has an estimated residual value of $18,100, has an estimated useful life of 38,000 miles, and was driven 3,000 miles during the year. Determine the following. If required, round your answer for the depreciation rate to two decimal places. a. The depreciable cost b. The depreciation rate c. The units-of-activity depreciation for the year Check My Work SAMSUNG $ S per mile Previous Next 4:56 A 4/15/2

Units-of-activity Depreciation A truck acquired at a cost of $325,000 has an estimated residual value of $17,900, has an estimated useful life of 37,000 miles, and was driven 3,300 miles during the year. Determine the following. If required, round your answer for the depreciation rate to two decimal places. (a) The depreciable cost (b) The depreciation rate per mile (c) The units-of-activity depreciation for the year %24 %24 %24

Answer 2

Question

Chapter 9, Problem 9.3APE

(a)

To determine

Unit-of-activity Method: Under this method of depreciation, the depreciation expense is calculated on the basis of units produced in a year. This method is suitable when a company has fluctuating productive rate. The formula to calculate the depreciation expense under this method is as follows:

Depreciation per unit = Cost−Residual valueEstimated units of useful life

Depreciation Expense = Depreciation per unit × Usage

the depreciable cost of the tractor.

(b)

To determine

the depreciation rate.

(c)

To determine

the units-of-activity depreciation for the year.

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Answer 3

Question

Chapter 9, Problem 9.3APE

(a)

To determine

Unit-of-activity Method: Under this method of depreciation, the depreciation expense is calculated on the basis of units produced in a year. This method is suitable when a company has fluctuating productive rate. The formula to calculate the depreciation expense under this method is as follows:

Depreciation per unit = Cost−Residual valueEstimated units of useful life

Depreciation Expense = Depreciation per unit × Usage

the depreciable cost of the tractor.

(b)

To determine

the depreciation rate.

(c)

To determine

the units-of-activity depreciation for the year.

Expert Solution & Answer

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Answer 4

Question

Chapter 9, Problem 9.3APE

(a)

To determine

Unit-of-activity Method: Under this method of depreciation, the depreciation expense is calculated on the basis of units produced in a year. This method is suitable when a company has fluctuating productive rate. The formula to calculate the depreciation expense under this method is as follows:

Depreciation per unit = Cost−Residual valueEstimated units of useful life

Depreciation Expense = Depreciation per unit × Usage

the depreciable cost of the tractor.

(b)

To determine

the depreciation rate.

(c)

To determine

the units-of-activity depreciation for the year.

Expert Solution & Answer

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Answer 5

Chapter 9, Problem 9.3APE

(a)

To determine

Unit-of-activity Method: Under this method of depreciation, the depreciation expense is calculated on the basis of units produced in a year. This method is suitable when a company has fluctuating productive rate. The formula to calculate the depreciation expense under this method is as follows:

Depreciation per unit = Cost−Residual valueEstimated units of useful life

Depreciation Expense = Depreciation per unit × Usage

the depreciable cost of the tractor.

(b)

To determine

the depreciation rate.

(c)

To determine

the units-of-activity depreciation for the year.

Answer 6

Chapter 9, Problem 9.3APE

(a)

To determine

Unit-of-activity Method: Under this method of depreciation, the depreciation expense is calculated on the basis of units produced in a year. This method is suitable when a company has fluctuating productive rate. The formula to calculate the depreciation expense under this method is as follows:

Depreciation per unit = Cost−Residual valueEstimated units of useful life

Depreciation Expense = Depreciation per unit × Usage

the depreciable cost of the tractor.

Answer 7

Chapter 9, Problem 9.3APE

(a)

To determine

Unit-of-activity Method: Under this method of depreciation, the depreciation expense is calculated on the basis of units produced in a year. This method is suitable when a company has fluctuating productive rate. The formula to calculate the depreciation expense under this method is as follows:

Depreciation per unit = Cost−Residual valueEstimated units of useful life

Depreciation Expense = Depreciation per unit × Usage

the depreciable cost of the tractor.

Answer 8

(b)

To determine

the depreciation rate.

Answer 9

(b)

To determine

the depreciation rate.

Answer 10

(c)

To determine

the units-of-activity depreciation for the year.

Answer 11

(c)

To determine

the units-of-activity depreciation for the year.

Answer 12

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Answer 13

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Answer 14

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Answer 15

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Solution Summary: The author calculates the depreciation expense on the basis of units produced in a year.

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the units-of-activity depreciation for the year.

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