Question
Alpha Company has the following items in its equipment account Asset & Date Purchased Method of Depreciation Cost Salvage Value 1. Delivery Truck 4/30/15 Unit
Alpha Company has the following items in its equipment account
Asset & Date Purchased | Method of Depreciation | Cost | Salvage Value |
1. Delivery Truck 4/30/15 | Unit of Activity | 60,000 | 11,000 |
2. Office Furniture 6/1/15 | Straight Line | 15,000 | 500 |
3. Computer 4/1/15 | Double Declining | 5,000 | 700 |
The Delivery Truck is estimated to have a life cycle of 200,000 miles. It was driven for
1. 16,500 miles in 2015 & 24,600 miles in 2016 & 25,000 miles in 2017
2. The Office Furniture has a life expectancy of 7 years
3. The Computer has a life expectancy of 4 years
Round any per unit calculations to the nearest half penny. Round all annual depreciation expenses to the nearest dollar. Use this information to compute for FY17 the following values:
1. Book Value of the Delivery Truck
2. Depreciation Expense Truck
3. Book Value of the Office Furniture
4. Depreciation Expense Office Furniture
5. Book Value of the Computer
6. Depreciation Expense - Computer
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