Question

On January 1, 2016, Friedman Company purchased a truck that cost $48,000. The truck had an...

On January 1, 2016, Friedman Company purchased a truck that cost $48,000. The truck had an expected useful life of 8 years and an $8,000 salvage value. The book value of the truck at the end of 2016, assuming that Friedman uses the double declining balance method, is:

$38,000.

$38,400.

$32,000.

$36,000.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1
Purchased Cost as on 1st Jan, 2016        48,000
Salvage Value           8,000
Depreciable Value        40,000
Useful Life (in Years)                   8
Annual Depreciation (SLM)           5,000
Depreciation Rate (SLM) 10.42%
Double Depreciation Rate 20.83%
Depreciation for 1st year        10,000
Book value at the end of first year (i.e. 31st Dec, 2016)        38,000
0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
On January 1, Year 1, Friedman Company purchased a truck that cost $50,000. The truck had...
On January 1, Year 1, Friedman Company purchased a truck that cost $50,000. The truck had an expected useful life of 8 years and an $9,000 salvage value. Friedman uses the double-declining-balance method. What is the book value of the truck at the end of Year 1? (Do not round intermediate calculations.) Multiple Choice $28,500 $37,500 $39,750 $30,750
22. On January 1, Year 1, Marino Moving Company paid $48,000 cash to purchase a truck....
22. On January 1, Year 1, Marino Moving Company paid $48,000 cash to purchase a truck. The truck was expected to have a four year useful life and an $8,000 salvage value. If Marino uses the double-declining-balance method, Which of the following shows how the adjusting entry to recognize depreciation expense at the end of Year 3 will affect the Company’s financial statements? a- Balance Shee Assets Cash Truck Acc. Dep. Liab. Equity 4,000 NA NA NA 4,000 NA ncome...
Deuce Company purchased a truck for $80,000 on January 1, 2018. The asset has an expected...
Deuce Company purchased a truck for $80,000 on January 1, 2018. The asset has an expected salvage value of $8,000 at the end of its five-year useful life. Calculate depreciation expense in 2019 (the second year) under: Straight-line depreciation? (2 points) Double-declining balance depreciation? (3 points) Sum-of-years digits depreciation? (3 points)
A piece of equipment was acquired on January 1, 2018, at a cost of $48,000, with...
A piece of equipment was acquired on January 1, 2018, at a cost of $48,000, with an estimated residual value of $2,000 and an estimated useful life of eight years. The company uses the double-declining-balance method. What is its book value at December 31, 2019?
On January 1, 2016, Sparks Company purchased for $360,000 snow-making equipment having an estimated useful life...
On January 1, 2016, Sparks Company purchased for $360,000 snow-making equipment having an estimated useful life of 8 years with an estimated salvage value of $25,000 and 500,000 units expected to be produced. Depreciation is taken for the portion of the year the asset is used. (a) Complete the form below by determining the depreciation expense and year-end book values of 2015 and 2016 using the 1. Straight Line Method 2. Production assuming 50,000 units produced in 2016 and 60,000...
Corales Company acquires a delivery truck at a cost of $65,000. The truck is expected to...
Corales Company acquires a delivery truck at a cost of $65,000. The truck is expected to have a salvage value of $2,000 at the end of its 5-year useful life. Assuming the declining-balance depreciation rate is double the straight-line rate, compute annual depreciation for the first and second years under the declining-balance method.
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
Depreciation Methods ABC Co purchased a truck on January 1, 2015 for $25,000; it cost $2500...
Depreciation Methods ABC Co purchased a truck on January 1, 2015 for $25,000; it cost $2500 to have it delivered, $1500 to have it installed, and taxes and title fees were $600 and $400, respectively. The truck has an estimated salvage value of $6,000 and is expected to last 5 years and 150,000 miles. Calculate depreciation expense and book value for each year under the Straight Line Method and the Double Declining Balance. (10 Points each)                  Straight Line                                            Double-Declining...
1 On January 1, 2017, Aylmer Inc purchased a truck for $100,000. The truck has an...
1 On January 1, 2017, Aylmer Inc purchased a truck for $100,000. The truck has an estimated useful life of 4 years, and a residual value of $10,000. REQUIRED: a. Calculate deprecaition, by year using the double-declining-balance method. b. If at the end of 2019, Aylmer traded the truck for another truck. Aylmer paid cash of $4,500 and the fair value of the truck was $15,000. What is the journal entry if the transaction has commercial substance?
1) Cambridge Company purchased a truck on January 1, 2018. Cambridge paid $21,000 for the truck....
1) Cambridge Company purchased a truck on January 1, 2018. Cambridge paid $21,000 for the truck. The truck is expected to have a $3,000 residual value and a 5-year life. Cambridge has a December 31 fiscal year end. Using the double-declining balance method, how much is the 2019 depreciation expense? (Enter only whole dollar values.) Hint: what is the year 2 depreciation amount? 2) Cambridge Company purchased a truck on January 1, 2018. Cambridge paid $16,000 for the truck. The...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT