Question
Linton Company purchased a delivery truck for $34,000 on January 1, 2015. The truck has an expected salvage value of $2,000, and is expected to
Linton Company purchased a delivery truck for $34,000 on January 1, 2015. The truck has an expected salvage value of $2,000, and is expected to be driven 100,000 miles over its estimated useful life of 8 years. Actual miles driven were 15,000 in 2015 and 12,000 in 2016.
Calculate depreciation expense per mile under units-of-activity method. (Round answer to 2 decimal places, e.g. 0.50.)
Depreciation expense per mile $ per mile
SHOW LIST OF ACCOUNTS LINK TO TEXT
Compute depreciation expense for 2015 and 2016 using the straight-line method, the units-of-activity method, and the double-declining-balance method. (Round answers to 0 decimal places, e.g. 5,275.)
2015 2016 Straight-line method $ $ Units-of-activity method $ $ Declining-balance method $ $
SHOW LIST OF ACCOUNTS LINK TO TEXT
Assume that Linton uses the straight-line method. Prepare the journal entry to record 2015 depreciation. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 5,275.)
Account Titles and Explanation Debit Credit
SHOW LIST OF ACCOUNTS LINK TO TEXT
Assume that Linton uses the straight-line method. Show how the truck would be reported in the December 31, 2015, balance sheet. (Round answers to 0 decimal places, e.g. 5,275.)
LINTON COMPANY Partial Balance Sheet December 31, 2015 $ Add Less : $
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