P10-31A (similar to) Question Help On January 1, 2016, Rapid Delivery Service purchased a truck at a cost of $80,000. Before placing the truck in service, Rapid spent $4,000 painting it, $1,500 replacing tires, and $6,500 overhauling the engine. The truck should remain in service for five years and have a residual value of $8,000. The truck's annual mileage is expected to be 30,000 miles in each of the first four years and 20,000 miles in the fifth year-140,000 miles in total. In deciding which depreciation method to use, Harvey Wamer, the general manager, requests a depreciation schedule for each of the depreciation methods (straight-line, units-of-production, and double-declining-balance). Read the requirements Requirement 1. Prepare a depreciation schedule for each depreciation method, showing asset cost, depreciation expense, accumulated depreciation, and asset book value Book Begin by preparing a depreciation schedule using the straight-line method. Straight-Line Depreciation Schedule Depreciation for the Year Asset Depreciable Useful Depreciation Accumulated Date Cost Cost Life Expense Depreciation 1-1-2016 S 92,000 12-31-2016 $ 84.000 5 years 16.800S 16,800 84,000 16,800 12-31-2017 5 years 33.600 84,000 5 years 16,800 12-31-2018 50,400 84,000 = 16.800 12-31-2019 67,200 12-31-2020 84.000 84,000 5 years 16,800 Value 92.000 75,200 58,400 5 year 41,600 24,800 8,000 Before completing the units of production depreciation schedule, calculate the depreciation expense per unit. (Round depreciation expense per unit to two decimal places Answer P10-31A (similar to) Question Help On January 1, 2016, Rapid Delivery Service purchased a truck at a cost of $80,000. Before placing the truck in service, Rapid spent $4,000 painting it, $1,500 replacing tires, and $6,500 overhauling the engine. The truck should remain in service for five years and have a residual value of $8,000. The truck's annual mileage is expected to be 30,000 miles in each of the first four years and 20,000 miles in the fifth year-140,000 miles in total. In deciding which depreciation method to use, Harvey Wamer, the general manager, requests a depreciation schedule for each of the depreciation methods (straightline, units-of-production, and double-declining-balance) Read the requirements. Before completing the units-of-production depreciation schedule, calculate the depreciation expense per unit. (Round depreciation expense per unit to two decimal places.) Cost Residual value Useful life in units Depreciation per unit S 92.000 8,000 )/ 140,000 0.60 Prepare a depreciation schedule using the units-of-production method. (Enter the depreciation per unit to two decimal places, SX.XX) Units-of-Production Depreciation Schedule Depreciation for the Year Asset Depreciation Number of Depreciation Accumulated Book Date Cost Per Unit Units Expense Depreciation Value 1-1-2016 S 92.000 92,000 12-31-2016 $ 30.000 S 18,000S 18,000 74,000 12-31-2017 30,000 = 18,000 36.000 56,000 12-31-2018 30,000 = 18,000 54,000 38,000 12-31-2019 30,000 18.000 72,000 20,000 12-31-2020 20,000 12,000 84,000 8,000 0.60 0.60 x 0.60 x 0.60 x 0.60 x Question Help Be P10-31A (similar to) On January 1, 2016. Rapid Delivery Service purchased a truck at a cost of $80,000. Before placing the truck in service, Rapid spent $4,000 painting it, $1,500 replacing tires, and $6,500 overhauling the engine. The truck should remain in service for five years and have a residual value of $8,000. The truck's annual mileage is expected to be 30,000 miles in each of the first four years and 20,000 miles in the fifth year-140,000 miles in total, In deciding which depreciation method to use, Harvey Warner, the general manager, requests a depreciation schedule for each of the depreciation methods (straight-line, units-of-production, and double-declining-balance), Read the requirements 0.60 X 0.60 x 0.60 30.000 = 12-31-2018 18.000 54,000 38,000 12-31-2019 30,000 = 18,000 72,000 20,000 20,000 = 12-31-2020 12.000 84.000 8,000 Prepare a depreciation schedule using the double-declining balance (DDB) method. (Round depreciation expense to the nearest whole dollar) Double-Declining-Balance Depreciation Schedule Depreciation for the Year Asset Book DDB Depreciation Accumulated Book Date Cost Value Rate Expense Depreciation Value 92000 1-1-2016 92000 92000 12-31-2016 36800 2 x (1/5) 36800 55200 X 55200 x 22080 2 x (1/5) 58880 12-31-2017 33120 13248 2 x (1/5) 72128 19872 12-31-2018 12-31-2019 2 x (1/5) 12-31-2020 33120 19872