Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Problem 2: On 1/2/2018 a company bought a vehicle costing $150,000. The salvage value was expected to be $45,000 and the useful life was expected

image text in transcribed
Problem 2: On 1/2/2018 a company bought a vehicle costing $150,000. The salvage value was expected to be $45,000 and the useful life was expected to be 10 years or 120,000 miles driven. The truck was driven 30,000 miles for 2018- 2019 combined. a) If the company uses units of activity depreciation, make the entry to record 2020 depreciation expense if the truck is driven 25,000 miles in 2020. Show your computations. b) On 1/2/2021 the company decided to change the estimated total miles it would drive this truck to 150,000 miles. Make the entry to record 2021 depreciation expense if the truck was driven 6,000 miles in 2021. Show your computations. c) On 1/2/2022 the company changes the estimated additional miles it would drive the truck to a total of 40,000 more miles from the date of this estimate change. Make the entry to record 2022 depreciation expense if the truck is driven 7,000 miles in 2022. Show your computations

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

Vector Mechanics for Engineers Statics and Dynamics

Authors: Ferdinand Beer, E. Russell Johnston Jr., David Mazurek, Phillip Cornwell, Brian Self

11th edition

73398241, 978-0073398242

Students also viewed these Accounting questions