Question

143. Chubbyville purchases a delivery van for $23,500. Chubbyville estimates that at the end of its...

143. Chubbyville purchases a delivery van for $23,500. Chubbyville estimates that at the end of its four-year service life, the van will be worth $2,500. During the four-year period, the company expects to drive the van 105,000 miles. Calculate annual depreciation for the four-year life of the van using each of the following methods. Round all amounts to the nearest dollar.

1. Straight line.
2. Double-declining-balance.
3. Activity-based.

Actual miles driven each year were 24,000 miles in Year 1; 26,000 miles in Year 2; 22,000 miles in Year 3; and 25,000 miles in Year 4. Note that actual total miles of 97,000 fall short of expectations by 8,000 miles.

150. Strawberry Fields purchased a tractor at a cost of $38,000 and sold it two years later for $25,000. Strawberry Fields recorded depreciation using the straight-line method, a five-year service life, and an $8,000 residual value. What was the gain or loss on the sale? Record the sale.






Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Speedy Delivery Company purchases a delivery van for $44,000. Speedy estimates that at the end of...
Speedy Delivery Company purchases a delivery van for $44,000. Speedy estimates that at the end of its four-year service life, the van will be worth $7,200. During the four-year period, the company expects to drive the van 184,000 miles. Actual miles driven each year were 48,000 miles in year 1 and 56,000 miles in year 2. Required: Calculate annual depreciation for the first two years of the van using each of the following methods. (Do not round your intermediate calculations.)...
Speedy Delivery Company purchases a delivery van for $31,200. Speedy estimates that at the end of...
Speedy Delivery Company purchases a delivery van for $31,200. Speedy estimates that at the end of its four-year service life, the van will be worth $5,600. During the four-year period, the company expects to drive the van 128,000 miles. Actual miles driven each year were 35,000 miles in year 1 and 39,000 miles in year 2.    Required: Calculate annual depreciation for the first two years of the van using each of the following methods. (Do not round your intermediate...
Speedy Delivery Company purchases a delivery van for $40,000. Speedy estimates that at the end of...
Speedy Delivery Company purchases a delivery van for $40,000. Speedy estimates that at the end of its four-year service life, the van will be worth $5,200. During the four-year period, the company expects to drive the van 174,000 miles. Actual miles driven each year were 44,000 miles in year 1 and 52,000 miles in year 2. Required: Calculate annual depreciation for the first two years of the van using each of the following methods. (Do not round your intermediate calculations.)...
Exercise 11-1 Depreciation methods [LO11-2] On January 1, 2018, the Excel Delivery Company purchased a delivery...
Exercise 11-1 Depreciation methods [LO11-2] On January 1, 2018, the Excel Delivery Company purchased a delivery van for $129,000. At the end of its five-year service life, it is estimated that the van will be worth $13,200. During the five-year period, the company expects to drive the van 386,000 miles. Required: Calculate annual depreciation for the five-year life of the van using each of the following methods. 1. Straight line. 2. Sum-of-the-years’-digits. 3. Double-declining balance. 4. Units of production using...
On January 1, 2021, the Excel Delivery Company purchased a delivery van for $30,000. At the...
On January 1, 2021, the Excel Delivery Company purchased a delivery van for $30,000. At the end of its five-year service life, it is estimated that the van will be worth $3,000. During the five-year period, the company expects to drive the van 132,000 miles. Required: Calculate annual depreciation for the five-year life of the van using each of the following methods. 2. Double-declining balance. (Round your answers to the nearest whole dollar amount.)
Barlow purchased a used van for use ih its business on January 1, 2017. It paid...
Barlow purchased a used van for use ih its business on January 1, 2017. It paid $11.000 for the van. Barlow expects the van to have a useful life of four years, with an estimated residual value of $800. Barlow expects to drive the van 31,000 miles during 2017, 18,000 miles during 2018, 14,000 miles in 2019, and 18,600 miles in 2020, for total expected miles of 81.600. Read the requirements (Complete all answer boxes. Enter a "0" for any...
On January 1, Duper Company purchased a delivery truck for $30,000. The company estimates the truck...
On January 1, Duper Company purchased a delivery truck for $30,000. The company estimates the truck will be driven 80,000 miles over its eight-year useful life. The estimated salvage value is $6,000. The truck was driven 12,000 miles in the first year. Which method results in the largest depreciation expense in year one? Select one: A. Straight-line B. Double-declining balance C. Sum-of-the-years' digits D. Units-of-production
E 9-3A. Depreciation Methods A delivery truck costing $20,000 is expected to have a $2,000 salvage...
E 9-3A. Depreciation Methods A delivery truck costing $20,000 is expected to have a $2,000 salvage value at the end of its useful life of four years of 100,000 miles.  Assume that the truck was purchased on January 2.  Calculate the depreciation expense for the second year using each of the following depreciation methods: (a) straight-line, (b) double-declining balance, and (c) units-of-production.  (Assume that the truck was driven 30,000 miles in the second year.) a. Straight-line depreciation = (Acquisition Cost - Salvage value)...
Nevertire Ltd purchased a delivery van costing $52,000. It is expected to have a residual value...
Nevertire Ltd purchased a delivery van costing $52,000. It is expected to have a residual value of $12,000 at the end of its useful life of 4 years or 200,000 kilometres. Ignore GST. Required: Assume the van was purchased on 1 July 2019 and that the accounting period ends on 30 June. Calculate the depreciation expense for the second year using each of the following depreciation methods straight-line diminishing balance (depreciation rate has been calculated as 31%) units of production...
Quick-as-Lightning, a delivery service, purchased a new delivery truck for $40,000 on January 1, 2019. The...
Quick-as-Lightning, a delivery service, purchased a new delivery truck for $40,000 on January 1, 2019. The truck is expected to have a useful life of ten years or 150,000 miles and an expected residual value of $3,000. The truck was driven 15,000 miles in 2019 and 13,400 miles in 2020. 1. Calculate the depreciation expense for 2019 and for 2020 under the straight-line method. 2. Calculate the depreciation expense for 2019 and for 2020 under the double-declining balance method. 3....
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT