Question

# Use the formula to calculate 2018 depreciation for each​ asset, and​ lastly, calculate the total cost...

Use the formula to calculate

2018

depreciation for each​ asset, and​ lastly, calculate the total cost and depreciation of all assets purchased in

2018.

​(Complete all answer boxes. Round depreciation per unit to the nearest cent and round final depreciation amounts to the nearest whole dollar. For any asset not​ depreciated, select​ "No depreciation taken on this​ asset" in the Formula column and enter a​ "0" in the Depreciation​ column.)

 Date in service Asset Cost Formula needed for 2018 depreciation March 3 Equipment \$3,600 Cost x (1 / Useful life x 2) x (10 months / 12 months) March 18 Truck \$35,800 [(Cost - Residual value) / Life in miles] x Miles driven April 2 Land \$16,000 No depreciation taken on this asset April 22 Furniture \$2,100 (Cost - Residual value) x (1 / Useful life) x (8 months / 12 months) June 10 Furniture \$1,600 (Cost - Residual value) x (1 / Useful life) x (7 months / 12 months) June 25 Equipment \$3,660 (Cost - Residual value) x (1 / Useful life) x (6 months / 12 months) August 1 Building \$135,000 (Cost - Residual value) x (1 / Useful life) x (5 months / 12 months) Depreciation

On March ​3, Fitness Equipment Doctor​, ​Inc., purchased equipment for \$ 3 comma 600 cash. The equipment has an estimated useful life of four years and no salvage value. Fitness Equipment Doctor uses​ double-declining balance depreciation for the equipment.

On March ​18, Fitness Equipment Doctor​, ​Inc., purchased a \$ 35 comma 800 truck financed by a note payable bearing 8 percent annual interest. The truck has an estimated useful life of 300 comma 000 miles and a residual value of \$ 5 comma 800. The truck was driven 56 comma 000 miles in 2018 and is depreciated using the units of production method.

On April ​2, Fitness Equipment Doctor​, ​Inc., paid \$ 16 comma 000 for land.

On April ​22, \$ 2 comma 100 of furniture was purchased on account. The furniture has a four​-year life and a residual value of \$ 300. Furniture is depreciated using​ straight-line depreciation.

On June ​10, \$ 1 comma 600 of furniture was purchased. The furniture has a five​-year life and a residual value of \$ 100 and is depreciated using​ straight-line depreciation.

On June ​25, \$ 3 comma 660 of equipment was purchased. The equipment has a four​-year life and a \$ 300 residual​ value, and is depreciated using the​ straight-line method.

On August ​1, Fitness Equipment Doctor​, ​Inc., purchased a building for \$ 135 comma 000 financed by a mortgage bearing 5 percent annual interest. The building has an estimated salvage value of \$ 30 comma 000 and is being depreciated over 25 years using the​ straight-line method.

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