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Chapter 8: Long-Lived Assets On March 31, 2024, Kemp Co. purchased a new vehicle for $25,000. The vehicle had an expected useful life of five
Chapter 8: Long-Lived Assets On March 31, 2024, Kemp Co. purchased a new vehicle for $25,000. The vehicle had an expected useful life of five years, and an expected residual value of $5,000. The company expected that in those five years, the vehicle would be driven for 100,000 kilometres based on the following schedule: 202410,000 kilometres 2025 - 20,000 kilometres 2026 - 25,000 kilometres 2027 - 22,000 kilometres 2028 - 18,000 kilometres 2029 - 5,000 kilometres Required: Assuming a December 31 fiscal year-end, prepare a depreciation schedule for the life of the asset using: a.) S-I (Straight-line depreciation) b.) UoP (Units-of-production depreciation) c.) DDB (Double-declining-balance depreciation)
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