Question

Please show your work!

On January 1, Year 1, Beth Company paid $21,400 cash to purchase a equipment. The equipment was expected to have a ten year useful life and an $4,200 salvage value. If Beth uses the double declining balance method, the book value at the end of Year 1 is $_______

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As part of a major renovation at the beginning of the year, Atiase Pharmaceuticals, Inc. sold shelving units (recorded as Equipment) that were 9 years old for $1,293 cash. The shelves originally cost $2,771 and had been depreciated on a straight-line basis over an estimated useful life of 10 years with an estimated residual value of $852.

When recording the sale, the debit to accumulated depreciation will be $______

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On January 1, Year 1, Pearson Moving Company paid $34,900 cash to purchase a truck. The truck was expected to have a ten year useful life and an $3,100 salvage value. If Pearson uses the straight-line method, the amount of depreciation expense recognized on the Year 4 income statement is $_______

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Uber Inc purchased a car for $24,200. The car has a salvage value of $3,000 and is estimated to be in use for 200,000 miles. What is the  depreciation expense for Year 3 assuming mileage used in year 1 was 18,330, year 2 was 17,750, and year 3 was 20,790? $_______

Answer 1

1	$17,120
	Equipment cost	$21,400
	Less: Depreciation	$4,280
	($21,400 x 20%)
	Book Value at the end of Year 1	$17,120
2	$1,727.10
	Depreciation expense
	($2,771 - $852) x 9/10 years
3	$3,180
	Depreciation expense
	($34,900 - $3,100)/ 10 years
4	$2,204
	Depreciation expense
	($24,200 - $3,000) x 20,790/200,000 miles