Great Adventures Problem AP7-1

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[The following information applies to the questions displayed below.] Tony and Suzie see the need for a rugged all-terrain vehicle to transport participants and supplies. They decide to purchase a used Suburban on July 1, 2022, for $14,400. They expect to use the Suburban for five years and then sell the vehicle for $5,700. The following expenditures related to the vehicle were also made on July 1, 2022:

• The company pays $2,400 to GEICO for a one-year insurance policy.
• The company spends an extra $5,400 to repaint the vehicle, placing the Great Adventures logo on the front hood, back, and both sides.
• An additional $2,600 is spent on a deluxe roof rack and a trailer hitch.

The painting, roof rack, and hitch are all expected to increase the future benefits of the vehicle for Great Adventures. In addition, on October 22, 2022, the company pays $1,600 for basic vehicle maintenance related to changing the oil, replacing the windshield wipers, rotating the tires, and inserting a new air filter.

* The calculations are incorrect, may you please provide the correct calculations and how to get them? Thank you.

Great Adventures Problem AP7-1 Part 3 3. Prepare a depreciation schedule using the straight-line method. Year 2022 2023 GREAT ADVENTURES End of Year Amounts Depreciation Accumulated Book Value Expense Depreciation $ 942 $ 942 $ 16,058 1,883 2,825 14,175 1,883 4,708 12,292 1,883 6,592 10,408 1,883 8,475 8,525 1,883 10,358 6,642 $ 10,357 2024 2025 2026 2027 Total 69