Question
Elegant Company purchased a new car for use in its business on January 1, 2017. It paid $28,000 for the car. Elegant expects the car
Elegant
Company purchased a new car for use in its business on January 1,
2017.
It paid
$28,000
for the car.
Elegant
expects the car to have a useful life of four years with an estimated residual value of zero.
Elegant
expects to drive the car
10,000
miles during
2017,
15,000
miles during
2018,
60,000
miles in
2019,
and
75,000
miles in
2020,
for total expected miles of
160,000.
Read the requirements
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Part 2
(Complete all answer boxes. Enter a "0" for any zero values.)
Question content area bottom
Part 1
| Double-declining-balance method | |||||
| Annual |
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| Depreciation | Accumulated | ||||
Year | Expense |
| Depreciation |
| Book Value |
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Start |
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2017 |
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2018 |
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2019 |
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2020 |
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Requirements
Dialog content starts
Using the double-declining-balance method of depreciation, calculate the following amounts for the car for each of the four years of its expected life:
a. | Depreciation expense |
b. | Accumulated depreciation balance |
c. | Book value |
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