Answered step by step
Verified Expert Solution
Link Copied!

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:

  1. 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.
    1. Straight-line method
      2016 $ fill in the blank 1
      2017 $ fill in the blank 2
    2. Sum-of-the-years'-digits method
      2016 $ fill in the blank 3
      2017 $ fill in the blank 4
    3. Double-declining-balance method
      2016 $ fill in the blank 5
      2017 $ fill in the blank 6
    4. Activity method
      2016 $ fill in the blank 7
      2017 $ fill in the blank 8
  2. 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.)
    1. Straight-line method
      2016 $ fill in the blank 9
      2017 $ fill in the blank 10
    2. Sum-of-the-years'-digits method
      2016 $ fill in the blank 11
      2017 $ fill in the blank 12
    3. Double-declining-balance method
      2016 $ fill in the blank 13
      2017 $ fill in the blank 14
    4. Activity method
      2016 $ fill in the blank 15
      2017 $ fill in the blank 16
  3. 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. The

    activitydouble-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

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

Global Financial Accounting And Reporting Principles And Analysis

Authors: Peter Walton, Walter Aerts

2nd Edition

1408017725, 978-1408017722

More Books

Students also viewed these Accounting questions

Question

Define safety and health.

Answered: 1 week ago