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please solve the 4 exercice ( showing the steps and answer ) On January 1, Eagle Co. paid $65,000 for a new truck. It was
please solve the 4 exercice ( showing the steps and answer )
On January 1, Eagle Co. paid $65,000 for a new truck. It was estimated that the truck would be driven 300,000 miles during the next 5 years, at which time it would have a salvage value of $10,000. At the end of the first and second years, the odometer registered 55,000 and 115,000 miles, respectively. What is the book value of the truck using straight-line depreciation at the end of the second year? a. $47,000 b. $43,000 c. $43,533 d. $56,000 On July 31,2015 , equipment is purchased for $66,000 with a 4-year life expectancy and salvage value of $5,000. If the doubledeclining-balance method is used, calculate depreciation expense for the year ending December 31,2015. a. $13,750 b. $12,708 c. $33,000 d. $31,000 On February 1, 2013, James Co., which uses straight-line depreciation, purchased equipment for $88,000 with a useful life of 12 years and $4,000 salvage value. On February 1,2017 , the equipment was sold for $56,000. Which of the following would James recognize as a result of this disposition? a. $7,000 loss b. $4,000 loss c. $4,000 gain d. No gain or loss On January 1, Mondale Co. paid $92,000 for a new truck. It was estimated that the truck would be driven 200,000 miles during the next 8 years, at which time it would have a salvage value of $7,000. At the end of the first three years, the odometer registered 27,000 , 53,000 , and 78,000 miles, respectively. What is the book value of the truck using the activity method of depreciation at the end of the third year? a. $67,150 b. $24,850 c. $51,850 d. $58,850Step by Step Solution
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