Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Depreciation for Partial Periods Clifford Delivery Company purchased a new delivery truck for $34,200 on April 1, 2016. The truck is expected to have a
Depreciation for Partial Periods
Clifford Delivery Company purchased a new delivery truck for $34,200 on April 1, 2016. The truck is expected to have a service life of 5 years or 108,000 miles and a residual value of $3,600. The truck was driven 10,900 miles in 2016 and 14,600 miles in 2017. Clifford computes depreciation to the nearest whole month.
Required:
- Compute depreciation expense for 2016 and 2017 using the For interim computations, carry amounts out to two decimal places. Round your final answer to the nearest dollar.
- Straight-line method
2016 $ fill in the blank 1 2017 $ fill in the blank 2 - Sum-of-the-years'-digits method
2016 $ fill in the blank 3 2017 $ fill in the blank 4 - Double-declining-balance method
2016 $ fill in the blank 5 2017 $ fill in the blank 6 - Activity method
2016 $ fill in the blank 7 2017 $ fill in the blank 8
- Straight-line method
- For each method, what is the book value of the machine at the end of 2016? At the end of 2017? (Round your answers to the nearest dollar.)
- Straight-line method
2016 $ fill in the blank 9 2017 $ fill in the blank 10 - Sum-of-the-years'-digits method
2016 $ fill in the blank 11 2017 $ fill in the blank 12 - Double-declining-balance method
2016 $ fill in the blank 13 2017 $ fill in the blank 14 - Activity method
2016 $ fill in the blank 15 2017 $ fill in the blank 16
- Straight-line method
- The book value of the asset in the early years of the asset's service will be
about the samehigherlower
under an accelerated method as compared to the straight-line method. Theactivitydouble-declining balancestraight-linesum-of-the-years-digits
method is appropriate when the service life of the asset is affected primarily by the amount the asset is used.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
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