Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

fill in the tables Part 1: The Pablo Paving Company purchased a new dump truck for $125,000 at the beginning of Year 1. It is

fill in the tables image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Part 1: The Pablo Paving Company purchased a new dump truck for $125,000 at the beginning of Year 1. It is estimated that the residual value will be $15,000 and have a useful life of 5 years. Prepare a depreciation schedule using each of the 4 methods. Round %'s to 2 decimal places. Method Sum-of-the-Years'-Digits Accumulated Book Value Depreciable Cost Depreciation Expense Year Rate Depreciation End End of Year of Year 1 2 3 2 4 5 4 ChA N Method: Double-Declining-Balance Method Book Value Accumulated Beginning of Year Depreciation Expense Book Value End of Year Year Rate Depreciation End of Year 0 1 3 3 4 4 5 85 8 Method: Modified Accelerated Cost Recovery System Depreciation Expense Accumulated Depreciation End Book Value End of Year Year Cost Rate of Year 1 20.00% 2 32.00% 3 19.20% 4 4 11.52% 5 11.52% 6 5.76% Part 2: If the Dump Truck is sold for $120,000 at the end of year 3, what is the gain/loss under each of the three 50 methods? 51 Book Value @ End of Year 3 Accumulated 52 Depreciation Selling Price Gain/Loss 53 54 Straight Line Sun of Years' 55 Digits Double 56 Declining Modified Accelerated 57 Cost Recovery Sheet

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

The Clinical Audit In Pharmaceutical Development

Authors: Michael Hamrell

1st Edition

0367399334, 978-0367399337

More Books

Students also viewed these Accounting questions

Question

Identify and control your anxieties

Answered: 1 week ago

Question

Understanding and Addressing Anxiety

Answered: 1 week ago