Question
Alpha Company has the following items in its equipment account: Asset & Date Purchased Method of Depreciation Cost Salvage Value 1.Delivery Truck (1/1/15) Unit of
Alpha Company has the following items in its equipment account:
Asset & Date Purchased Method of Depreciation Cost Salvage Value
1.Delivery Truck (1/1/15) Unit of Activity $60,000 $11,000
2.Office Furniture (1/1/15) Straight Line $15,000 $500
3.Computer (1/1/15) Double Declining $5,000 $700
1. The delivery truck is estimated to have a life cycle of 200,000 miles. It was driven for 16,500 miles in 2015 & 24,600 miles in 2016
2. The Office Furniture has a life expectancy of 7 years
3. The Computer has a life expectancy of 4 years.
Round all annual depreciation expenses to the nearest dollar. Use this information to compute for Fiscal Year 2016 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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