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Hour Cars and Trucks (HCT) offers hourly-rate car and truck rentals to customers in three cities: Phoenix, Austin, and NYC. HCT's head office controls all
Hour Cars and Trucks (HCT) offers hourly-rate car and truck rentals to customers in three cities: Phoenix, Austin, and NYC. HCT's head office controls all new vehicle purchases but allows each location to set its own rental rates, determine its own depreciation expense, and obtain vehicle repair and maintenance services as the vehicles are used during he year. Each location has had the same number of vehicles and has not changed its rental rates since HCT started operations two years ago. The accounting supervisor in HCT's head office is preparing for CT's December 31 year-end and has asked you the following questions. Required: 1. If more miles are driven in Year 2 than in Year 1, what should happen to the given items on HCT's Income statement in Year 2 (as compared to Year 1)? Choose increase, decrease, or stay constant. The Tableau dashboard below shows monthly rental revenue, depreciation expense, and repairs and maintenance expense for the three cities combined. You can use the filter options in the upper right corner of the dashboard to answer questions 2-4 about each location. 5. Dollars) Hour Cars and Trucks Financial Data by Location $450,000 $400,000 $350,000 $300,000 $250,000 Location (All) 2. Using the filter options in the upper right corner of the Tableau dashboard, select NYC. Which depreciation method is used in this city? 3. Using the filter options in the upper right corner of the Tableau dashboard, select Austin. Which depreciation method is used in this city? 4. Using the filter options in the upper right corner of the Tableau dashboard, select Phoenix. Notice the trend in the Repairs and Maintenance Expense account as compared to the trend in Depreciation Expense. Which of the given statements best explains the changes in these accounts? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 If more miles are driven in Year 2 than in Year 1, what should happen to the following items on HCT's income statement in Year 2 (as compared to Year 1)? Choose increase, decrease, or stay constant. Rental Revenue Repairs and Maintenance Expense Straight-Line Depreciation Expense Required 1 Units-of- Production Depreciation Double-Declining Depreciation Expense Expense Required 2 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Using the filter options in the upper right corner of the Tableau dashboard, select NYC. Which depreciation method is used in this city? Which depreciation method is used in this city? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Using the filter options in the upper right corner of the Tableau dashboard, select Austin. Which depreciation method is used in this city? Which depreciation method is used in this city? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Using the filter options in the upper right corner of the Tableau dashboard, select Phoenix. Notice the trend in the Repairs and Maintenance Expense account as compared to the trend in Depreciation Expense. Which of the following best explains the changes in these accounts? The vehicles were driven more in the first half of the year than in the last half of the year. The vehicles were driven varying amounts but this location adopted a policy in the middle of the year to capitalize rather than expense most costs relating to repairs and maintenance. The location sold a portion of its vehicle fleet in the middle of the year, thereby reducing repairs and maintenance costs. The location did not pay for or accrue repairs and maintenance services obtained during the last month of the year.
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