Question
I need the calculations for my questions as well: The cost ofa vehicle is estimated at $36,500. A girl would spend an additional $2,500 to
I need the calculations for my questions as well:
The cost ofa vehicle is estimated at $36,500. A girl would spend an additional $2,500 to have the vehicle painted. Another additional cost is estimated at $1,500. The vehicle is estimated to last about 5 years, and she expects to drive it for 200,000 miles. The annual cost of vehicle insurance will be $2,400. It is estimated that the vehicle will sell for $7,500 at the end of the 5 years. If she buys the vehicle on August 15, 2020, and it will be ready for use on September 1, 2020. Calculate the vehicle depreciation.
I calculated the cost of the vehicle and it is $40500, which is right. I need help with the rest.
Prepare three depreciation tables for 2020, 2021 and 2022: one for straight-line depreciation (similar to the one in Illustration 10-9), one for double-declining balance depreciation (Illustration 10-10), and one for units-of-activity depreciation (Illustration 10-11). For units-of-activity, she estimates she will drive the vehicle as follows: 15,000 miles in 2020; 45,000 miles in 2021; 50,000 miles in 2022; 50,000 miles in 2023; and 40,000 miles in 2024. The company has a December 31 year-end.(Round depreciation cost/unit to 3 decimal places, e.g. 0.225.)
Straight-line depreciation
YearDepreciable CostsDepreciation ExpenseAccumulated DepreciationNet Book Value
$
2020$$$$
2021$$$$
2022$$$$
Double-declining-balance depreciation
YearNBV (Beg. of Year)Depreciation ExpenseAccumulated DepreciationNet Book Value
$
2020 $ $ $ $
2021 $ $ $ $
2022 $ $ $ $
Units-of activity depreciation
YearUnits of ActivityDepreciation ExpenseAccumulated DepreciationNet Book Value
$
2020$ $ $ $
2021$ $ $ $
2022$ $ $ $
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