Burger Chef acquired a delivery truck on March 1, 2021, for $31,800. The company estimates a residual value of $1,800 and a six-year service life.
Burger Chef acquired a delivery truck on March 1, 2021, for $31,800. The company estimates a residual value of $1,800 and a six-year service life. It expects to drive the truck 75,000 miles. Actual mileage was 10,700 miles in 2021 and 16,400 miles in 2022.
Calculate depreciation expense and net book value using the Units-of-Production method for 2021 and 2022, assuming a December 31 year-end.
depreciation expense: Net Book Value:
2021 ________ _________
2022 _________ _________
Step by Step Solution
There are 3 Steps involved in it
Step: 1
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Authors: Richard F.Chambers, CIA, QIAL, CGAP, CCSA, CRMA
1st Edition
0894139037, 978-0894139031
