Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Indradhanush Pharmacy Corp. purchased a delivery vehicle for $68000. The company paid $500 to have the company logo painted on the van. The insurance for

image text in transcribed
Indradhanush Pharmacy Corp. purchased a delivery vehicle for $68000. The company paid $500 to have the company logo painted on the van. The insurance for the van is $2800 per year. The vehicle will be depreciated using 4 diminishing balance. The residual value of the vehicle after five years is estimated to be $6000. a) Calculate the depreciation for all five years, and fill the blanks below. Formatting: Only enter plain number (no $-sign or thousands-separator); round the results to two digits after the comma. Blank 1: Depreciation expense in year 1 Blank 2: Depreciation expense in year 2 Blank 3: Depreciation expense in year 3 Blank 4: Depreciation expense in year 4 Blank 5: Accumulated depreciation in year 5 b) At the end of year 5, the manager of Indradhanush Pharmacy Corp. coniders to sell the vehicle for $6300. If the deal gets approved, would the company make a gain or loss on the disposal? Blank 6: Answer the question above by writing either "gain" or "loss" (one word!) without quotation marks. Blank 7: What $-amount would the company gain or lose from the transaction? Formatting instructions: Enter the amount as a plain number (no + or - signs, no S-signs, no thousands-separator); round the results to two digits after the comma

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

Human Resources Audit Analysis Of And Collective Staff Performance

Authors: Hassani Moindjie MLIMI

1st Edition

6203356999, 978-6203356991

More Books

Students also viewed these Accounting questions