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Fresh Food Express specializes in the delivery of refrigerated foods. The manager of the Delivery Division purchased a delivery truck for $240,000 and has expressed
Fresh Food Express specializes in the delivery of refrigerated foods. The manager of the Delivery Division purchased a delivery truck for $240,000 and has expressed concern over the effect of depreclating that and other trucks on his Division's profits. As an assistant to the Chief Financlal Officer (CFO), you have been asked to prepare a presentation meant to demonstrate the differential effects of three depreciation methods: activity-based, straight-Iine, and double-declining-balance. The truck's estimated residual value is $40,000. You have plotted depreclation each year (left graph) using an estimated five-year useful life. The graph on the right shows the accumulation of depreciation each for each method. 11 12 13 Click here to open the graph(s) in a new tab. Required: Answer is not complete. Complete this question by entering your answers in the tabs below. What is the truck's estimated residual value? Fresh Food Express specializes in the delivery of refrigerated foods. The manager of the Delivery Division purchased a delivery truck for $240,000 and has expressed concern over the effect of depreciating that and other trucks on his Division's profits. As an assistant to the Chief Financial Officer (CFO), you have been asked to prepare a presentation meant to demonstrate the differential effects of three depreciation methods: activity-based, straight-line, and double-declining-balance. The truck's estimated residual value is $40,000. You have plotted depreciation each year (left graph) using an estimated five-year useful life. The graph on the right shows the accumulation of depreciation each for each method. Click here to open the graph(s) in a new tab. Required: Complete this question by entering your answers in the tabs below. By the end of Year 2, Accumulated Depreciation under Method 1 is $80,000. What would be the reported book value of the truck at that time? Fresh Food Express specializes in the delivery of refrigerated foods. The manager of the Delivery Division purchased a delivery truck for $240,000 and has expressed concern over the effect of depreciating that and other trucks on his Division's profits. As an assistant to the Chief Financial Officer (CFO), you have been asked to prepare a presentation meant to demonstrate the differential effects of three depreciation methods: activity-based, straight-line, and double-declining-balance. The truck's estimated residual value is $40,000. You have plotted depreciation each year (left graph) using an estimated five-year useful life. The graph on the right shows the accumulation of depreciation each for each method. Click here to open the graph(s) in a new tab. Required: Complete this question by entering your answers in the tabs below. If the CFO instead uses Method 3, Accumulated Depreciation by the end of Year 2 would be $153,600. What would be the reported book value of the truck at the end of Year 2 using Method 3
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