Question 14- 16 Nadia Hicks, owner of High Country Tours, purchased a 2019 RV for her fleet of rental vehicles at a cost of $150,000. Nadia assumes a 5 year useful life at which time she will trade in the RV for a new model at a trade-in value of $25,000. Complete a depreciation schedule for this unit under the straight-line method of depreciation. Year Depreciable Cost Depreciation Rate Depreciation Expense Accumulated Depriciation Book Value 2019 125,000 20% 25,000 25,000 125,000 2020 125,000 20% 25,000 50,000 100,000 2021 125,000 20% 25,000 75,000 75,000 2022 125,000 20% 25,000 100,000 50,000 2023 125,000 20% 25,000 125,000 25,000

15. (5 pts) Historically, Nadia has found that newer vehicles are rented more frequently that older vehicles. In an attempt to tie rental revenues to depreciation Nadia has used an accelerated depreciation method expensing depreciation by 30% in 2019, 25% in 2020, 20% in 2021, 15% in 2022 and 10% in 2023. Complete the depreciation schedule. Use the information from Problem 14 to solve. Year Depreciable Depreciation Depreciation Accumulated Book Value Cost Rate Expense Depreciation 2019 2020 2021 2022 2023

16. (5 pts) At the end of 2022, the RV is destroyed as result of a freak tornado. The insurance company deems this is an act of God and therefore not covered by insurance. Create a journal entry to record the disposal of this asset. Use your responses to Question #15 to answer this question.