Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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$ $ $ $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting Information for Decisions

Authors: John J. Wild

9th edition

1259917045, 978-1259917042

More Books

Students also viewed these Accounting questions