On January 1, Everything Hot Dogs purchased a hot dog stand for $32,000; it has an estimated useful life of 8 years and no residual value. Suppose that after using the hot dog stand for three years and straight-line depreciation, the company determines that the stand will remain useful for only four more years. Record Everything Hot Dogs' depreciation expense on the hot dog stand for year 4 using the straight-line method. (Record debits first, then credits. Exclude explanations from any journal entries.) Journal Entry Accounts Date Debit Credit Orbit Airways purchased a baggage handling truck for $53,000. Suppose Orbit Airways sold the truck on December 31, 2018, for $39,000 cash, after using the truck for three full years and accumulating depreciation of $31,000. Make the journal entry to record Orbit Airways' sale of the truck. (Record debits first, then credits. Exclude explanations from any journal entries.) Journal Entry Date Accounts Debit Credit Dec 31, 2018 Choose from any list or enter any number in the innuit file and then continuin in the mid ---- Knight purchased land with a current market value of $126,000, a building with a market value of $27,000, and equipment with a market value of $27,000. Journalize the lump sum purchase of the three assets purchased for a total cost of $170,000 in exchange for a note payable. (Record debits first, then credits. Exclude explanations from any journal entries.) Journal Entry Accounts Date Debit Credit On January 1, Luna Trucking purchased a used Kenworth truck at a cost of $57,000. Luna Trucking expects the truck to remain useful for ten years (750,000 miles) and to have a residual value of $12,000. Luna Trucking expects the truck to be driven 150,000 miles the first year and 262,500 miles the second year. Read the requirements Requirement 1. Compute Luna Trucking's first-year depreciation expense on the truck using (a) Straight-line, (b) Units of production, and (c) Double-declining balance. Start by selecting the formulas needed to compute annual depreciation under each of the three methods. Straight-line depreciation Units of production depreciation Double-declining balance depreciation Straight-line depreciation Units of production depreciation Double-declining balance depreciation truck using the straight-line method. Book value x [(1/ Useful life in miles) x 2] Book value x [(1/ Useful life in years) x2] Book value x [(1/Useful life in years) x 3] (Cost - Residual value)/Useful life in miles [(Cost - Residual value) / Useful life in miles] x Miles driven (Cost - Residual value) /Useful life in years Cost/Useful life in miles Cost/Useful life in years is $ truirk ricing the unite of nodurtion method /Round the d then continue to the next question ? On January 1, Luna Trucking purchased a used Kenworth truck at a cost of $57,000. Luna Trucking expects the truck to remain useful for ten years (750,000 miles) and to have a residual value of $12,000. Luna Trucking expects the truck to be driven 150,000 miles the first year and 262,500 miles the second year. Read the requirements a. Compute Luna Trucking's first-year depreciation expense on the truck using the straight-line method. First-year depreciation on the truck using the straight-line method is $ b. Compute Luna Trucking's first-year depreciation expense on the truck using the units of production method. (Round the depreciation per unit to the nearest cent, and round your final answer to the nearest whole dollar.) First-year depreciation on the truck using the units of production method is $ c. Compute Luna Trucking's first-year depreciation expense on the truck using the double-declining balance method. (Round the double-declining depreciation rate to two decimal places. Round your final answer to the nearest whole dollar) First-year depreciation on the truck using the double-declining balance method is $ First-year depreciation on the truck using the donble-declining balance method is $ Requirement 2. Show the truck's book value at the end of the first year under the straight-line method Select the formula and then enter the amounts to calculate the book value at the end of the first year using the straight-line method Book value
