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Breaker Company owns 3 vehicles which are used in operations. Breaker assumes that each vehicle will last 5 years (or 80,000 miles) and a residual
Breaker Company owns 3 vehicles which are used in operations. Breaker assumes that each vehicle will last 5 years (or 80,000 miles) and a residual value of 12% was assigned. The vehicle purchase prices and dates of purchase are as follows:
During the vehicle life were driven as follows:
Assume the company uses the Units of Production method. True or false, Breaker will report $9,922 of depreciation on vehicle 1 for the twelve months ended 12/31/2025.
Breaker Company owns 3 vehicles which are used in operations. Breaker assumes that each vehicle will last 5 years (or 80,000 miles) and a residual value of 12% was assigned. The vehicle purchase prices and dates of purchase are as follows: Purchase Date Cost Vehicle 1 7/1/2021 $82,000 Vehicle 2 2/1/2022 $45,000 Vehicle 3 10/1/2022 $65,000 During the vehicle life were driven as follows: Actual Miles Driven each year Cumulative miles Vehicle 1 Vehicle 2 Vehicle 3 Total Vehicle 1 Vehicle 2 Vehicle 3 Total 2021 14,000 14,000 2021 14,000 14,000 2022 18,000 22,000 14,000 54,000 2022 32,000 22,000 14,000 68,000 2023 28,000 21,000 17,000 66,000 2023 60,000 43,000 31,000 134,000 18,000 24,000 16,000 58,000 2024 78,000 67,000 47,000 192,000 2025 11,000 16,000 19,000 46,000 2025 89,000 83,000 66,000 238,000 Assume the company uses the Units of Production method. True or false, Breaker will report $9,922 of depreciation on vehicle 1 for the twelve months ended 12/31/2025. True False 2024Step by Step Solution
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