Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Depreciation by Two Methods A Caterpillar tractor acquired on January 12 at a cost of $126,000 has an estimated useful life of 25 years. Assuming

image text in transcribed
image text in transcribed
Depreciation by Two Methods A Caterpillar tractor acquired on January 12 at a cost of $126,000 has an estimated useful life of 25 years. Assuming that it will have no residual value. a. Determine the depreciation for each of the first two years by the straight-line method. Round your answer to the nearest cent if rounding is required. Depreciation First year Second year b. Determine the depreciation for each of the first two years by the double-declining-balance method. Round your answer to the nearest cent if rounding is required. Depreciation First year Second year Book Value of Fixed Assets The following data (in millions) were adapted from recent annual reports of United Parcel Service, Inc. (UPS). UPS provides delivery and freight services throughout the world. Year 2 Year 1 Vehicles $572,580 $332,096 Aircraft 543,951 429,435 Land 85,887 74,435 Buildings 692,822 521,048 Equipment 738,628 732,902 Construction in progress Less accumulated depreciation 11,452 (727,177) 5,726 (606,935) a. Compute the book value of the fixed assets for years 1 and 2 Year 2 book value million Year 1 book value million b. UPS appears to have typical of its operations in year 2 from growing companies. of fixed assets. This

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing For Dummies

Authors: Maire Loughran

1st Edition

0470530715, 978-0470530719

More Books

Students also viewed these Accounting questions

Question

Define Administration?

Answered: 1 week ago