Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Exercise 9-07 a1-a2, b1-b2 (Part Level Submission) Pharoah Company purchased a delivery truck for $32,400 on January 1, 2020. The truck has an expected salvage
Exercise 9-07 a1-a2, b1-b2 (Part Level Submission) Pharoah Company purchased a delivery truck for $32,400 on January 1, 2020. The truck has an expected salvage value of $2,400, and is expected to be driven 100,000 miles over its estimated useful life of 8 years. Actual miles driven were 13,600 in 2020 and 12,100 in 2021 (a1) Your answer is correct. Calculate depreciation expense per mile under units-of-activity method. (Round answer to 2 decimal places, e.g. 0.50.) De ation expense 0.3 per mile Click if you would like to Show Work for this question: Open Show Work 10W LIST OF ACCOUNTS SHOW SOLUTION SHOW ANSWE (a2) Compute depreciation expense for 2020 and 2021 using (1) the straight-line method, (2) the units-of-activity method, and (3) the double-declining-balance method. (Round depreciation cost per unit to 2 decimal places, e.g. 0.50 and depreciation rate to 0 decimal places, e.g. 1596, Round final answers to 0 decimal places, e.g. 2,125.) Depreciation Expense 2020 2021 (1) Straight-line method (2) Units-of-activity method (3) Double-declining-balance method Click if you would like to Show Work for this question: Open Show Work
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