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Question: Exercise 9-7 (Part Level Submission) Linton Compan...

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Exercise 9-7 (Part Level Submission) Linton Company purchased a delivery truck for $27,000 on January 1, 2017. The truck has an expected salvage value of $2,400, and is expected to be driven 110,000 miles over its estimated useful life of 5 years. Actual miles driven were 15,500 in 2017 and 13,800 in 2018.

(a1)

Calculate depreciation expense per mile under units-of-activity method. (Round answer to 2 decimal places, e.g. 0.50.)

Depreciation expense		$	per mile

Exercise 9-5 (Part Level Submission)

Yello Bus Lines uses the units-of-activity method in depreciating its buses. One bus was purchased on January 1, 2017, at a cost of $273,346. Over its 4-year useful life, the bus is expected to be driven 163,300 miles. Salvage value is expected to be $8,800.

(a)

	Your answer is correct.

Compute the depreciable cost per unit. (Round answer to 2 decimal places, e.g. 0.50.)

Depreciation cost per unit		$ per mile

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(b)

	Your answer is partially correct. Try again.

Prepare a depreciation schedule assuming actual mileage was: 2017, 51,300; 2018, 37,000; 2019, 34,000; and 2020, 41,000. (Round cost per unit to 2 decimal places, e.g. 15.25 and all other answers to 0 decimal places, e.g. 5,275.)

Computation								End of Year
Year		Units of Activity		Depreciation Cost /Unit	=	Annual Depreciation Expense		Accumulated Depreciation		Book Value
2017				$		$		$		$
2018
2019
2020

Exercise 9-10

Pryce Company owns equipment that cost $66,600 when purchased on January 1, 2014. It has been depreciated using the straight-line method based on an estimated salvage value of $3,300 and an estimated useful life of 5 years. Prepare Pryce Companys journal entries to record the sale of the equipment in these four independent situations. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g.125. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

(a)		Sold for $32,980 on January 1, 2017.
(b)		Sold for $32,980 on May 1, 2017.
(c)		Sold for $10,000 on January 1, 2017.
(d)		Sold for $10,000 on October 1, 2017.

o.

Account Titles and Explanation

Debit

Credit

a)------------------

--------------------

-------------------------

----------------------------

b)-----------------------------------

-------------------------------------------

to record depreciation

___________________

_________________

_____________________

____________________

to record sale of equipment

_______________________

____________________

__________________________

______________________

to record sale of equipment

c)________________

__________________

________________________

_____________________

d)________________________

____________________________

to record deprecaton