Kant Enterprises purchased a truck for $11,000 on January 1, 2016. The truck will have an estimated
Question:
Kant Enterprises purchased a truck for $11,000 on January 1, 2016. The truck will have an estimated salvage value of $1,000 at the end of 5 years. If you use the units-of-activity method, the balance in accumulated depreciation at December 31, 2017, can be computed by the following formula:
(a) ($11,000 ÷ Total estimated activity) ×
Units of activity for 2017.
(b) ($10,000 ÷ Total estimated activity) ×
Units of activity for 2017.
(c) ($11,000 ÷ Total estimated activity) ×
Units of activity for 2016 and 2017.
(d) ($10,000 ÷ Total estimated activity) ×
Units of activity for 2016 and 2017.
*17. Jefferson Company purchased a piece of equipment on January 1, 2017. The equipment cost $60,000 and has an estimated life of 8 years and a salvage value of $8,000. What was the depreciation expense for the asset for 2018 under the double-declining-balance method?
(a) $6,500.
(c) $15,000.
(b) $11,250.
(d) $6,562.
Step by Step Answer:
Financial Accounting
ISBN: 9781118953907
8th Edition
Authors: Paul D Kimmel, Jerry J Weygandt, Donald E Kieso