Corales Company acquires a delivery truck at a cost of $43,000. The truck is expected to have a salvage value of $6,000 at the end of its 8-year useful life. Compute annual depreciation expense for the first and second years using the straight-line method.

Corales Company acquires a delivery truck at a cost of $80,000. The truck is expected to have a salvage value of $7,000 at the end of its 5-year useful life. Assuming the declining-balance depreciation rate is double the straight-line rate, compute annual depreciation for the first and second years under the declining-balance method.

Rosco Taxi Service uses the units-of-activity method in computing depreciation on its taxicabs. Each cab is expected to be driven 157,000 miles. Taxi no. 10 cost $37,000 and is expected to have a salvage value of $730. Taxi no. 10 is driven 31,800 miles in year 1 and 19,100 miles in year 2.

Corales Company acquires a delivery truck at a cost of $43,000. The truck is expected to have a salvage value of $6,000 at the end of its 8-year useful life. Compute annual depreciation expense for the first and second years using the straight-line method. Year 1 $ Annual depreciation expense Year 2 $ 4625 Corales Company acquires a delivery truck at a cost of $80,000. The truck is expected to have a salvage value of $7,000 at the end of its 5-year useful life. Assuming the declining-balance depreciation rate is double the straight-line rate, compute annual depreciation for the first and second years under the declining-balance method. Year 1 $ Annual depreciation expense Year 2 $ Brief Exercise 10-7 (Part Level Submission) Rosco Taxi Service uses the units-of-activity method in computing depreciation on its taxicabs. Each cab is expected to be driven 157,000 miles. Taxi no. 10 cost $37,000 and is expected to have a salvage value of $730. Taxi no. 10 is driven 31,800 miles in year 1 and 19,100 miles in year 2. (a1) Calculate depreciation cost per mile using unit-of-activity method. (Round answer to 2 decimal places, e.g. 0.50.) $ Depreciation cost mile per In recent years, Avery Transportation purchased three used buses. Because of frequent turnover in the accounting department, a different accountant selected the depreciation method for each bus, and various methods were selected. Information concerning the buses is summarized as follows. Bus 1 2 3 Acquired 1/1/15 1/1/15 1/1/16 Cost $ 97,600 129,000 89,200 Salvage Value $ 6,000 12,000 8,000 Useful Life in Years 4 5 4 Depreciation Method Straight-line Declining-balance Units-of-activity For the declining-balance method, the company uses the double-declining rate. For the unitsof-activity method, total miles are expected to be 116,000. Actual miles of use in the first 3 years were 2016, 24,000; 2017, 35,500; and 2018, 30,000. For Bus #3, calculate depreciation expense per mile under units-of-activity method. (Round answer to 2 decimal places, e.g. 0.50.) Depreciation expense $ per mile Link to Text Compute the amount of accumulated depreciation on each bus at December 31, 2017. (Round answers to 0 decimal places, e.g. 2,125.) Accumulated depreciation BUS 1 BUS 2 BUS 3 Link to Text $ $ $ If Bus 2 was purchased on April 1 instead of January 1, what is the depreciation expense for this bus in (1) 2015 and (2) 2016? (Round answers to 0 decimal places, e.g. 2,125.) (1) 2015 Depreciation expense $ (2) 2016 $ Link to Text At December 31, 2017, Grand Company reported the following as plant assets. Land Buildings Less: Accumulated depreciation buildings Equipment Less: Accumulated depreciation equipment Total plant assets $ 3,560,000 $29,090,000 12,460,000 16,630,000 48,930,000 5,430,000 43,500,000 $63,690,000 During 2018, the following selected cash transactions occurred. April 1 May 1 June 1 July 1 Dec. 31 Purchased land for $2,000,000. Sold equipment that cost $1,170,000 when purchased on January 1, 2014. The equipment was sold for $702,000. Sold land purchased on June 1, 2008 for $1,470,000. The land cost $410,000. Purchased equipment for $2,470,000. Retired equipment that cost $473,000 when purchased on December 31, 2008. No salvage value was received. Journalize the above transactions. The company uses straight-line depreciation for buildings and equipment. The buildings are estimated to have a 50-year life and no salvage value. The equipment is estimated to have a 10-year useful life and no salvage value. Update depreciation on assets disposed of at the time of sale or retirement. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Dat Account Titles and e Explanation (To record depreciation) May 1 (To record sale of equipment) Debi Credi t t (To record depreciation) (To record retirement of equipment) Link to Text Link to Text Link to Text Record adjusting entries for depreciation for 2018. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Dat Account Titles and e Explanation (To record building depreciation) Debi Credi t t (To record equipment deprecition) Link to Text Link to Text Link to Text Prepare the plant assets section of Grand's balance sheet at December 31, 2018. (List Plant Assets in order of Land, Buildings and Equipment.) Grand Company Balance Sheet (Partial) $ $ : : $ Problem 10-6A Ceda Co. has equipment that cost $78,300 and that has been depreciated $50,300. Record the disposal under the following assumptions. (a) It was scrapped as having no value. (b) It was sold for $22,200. (c) It was sold for $29,500. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) No Account Titles and . Explanation (a) (b) (c) Debit Credit Link to Text Link to Text Problem 10-7A The intangible assets section of Sappelt Company at December 31, 2017, is presented below. Patents ($75,000 cost less $7,500 amortization) Franchises ($54,000 cost less $21,600 amortization) Total $67,500 32,400 $99,900 The patent was acquired in January 2017 and has a useful life of 10 years. The franchise was acquired in January 2014 and also has a useful life of 10 years. The following cash transactions may have affected intangible assets during 2018. Jan. 2 Paid $36,000 legal costs to successfully defend the patent against infringement by another company. Jan.- Developed a new product, incurring $140,000 in research and development costs. A June patent was granted for the product on July 1. Its useful life is equal to its legal life. Sept. Paid $51,000 to an extremely large defensive lineman to appear in commercials 1 advertising the company's products. The commercials will air in September and October. Oct. 1 Acquired a franchise for $116,000. The franchise has a useful life of 50 years. Prepare journal entries to record the transactions above. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Dat Account Titles and e Explanation Debi Credi t t Link to Text Link to Text Prepare journal entries to record the 2018 amortization expense. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Dat Account Titles and e Explanation Debi Credi t t (To record patents amortisation) (To record franchise amortisation) Link to Text Link to Text Prepare the intangible assets section of the balance sheet at December 31, 2018. (Round answers to 0 decimal places, e.g. 2,125.) Sappelt Company Balance Sheet (Partial) $ $ Link to Text Link to Text Question Attempts: 0 of 5 used Save Submit for Answer later