rial N c 2 Aav PO Paragraph BI U V ab x x Alo Av Styles Dictat Exercise 9.7 Corp. bought a truck for $34,000 on JAN 01, 2022. Truck's salvage value is estimated at $2,000. Estimated life = 8 years or 100,000 miles. Actual miles driven were 15,000 in 2022 and 12,000 in 2023. Instructions Compute depreciation expense for 2022 and 2023 using (1) the straight-line method, (2) the units-of-activity method, and (3) the double-declining-balance method. Straight-Line ... (same amt of dercos each year).(SL rate = 100/8 yrs = 12,5%) Asset Cost - Est. Salvage - Depreciable Cost / Est life (vrs) - Annual Exp OR Assaf Cost - Est. Salvage = Depreciable Cost X SL rate = Annual Exp Show Your Calculation Below Annual Depreg Exp 2022 2023 Units of Activity ... (miles) Asset Cost Est Salvage Depreciable Cost / Est life (miles) - Exp PER MILE Then Eyn per mile x miles driven that years Annual Dear Exp Show Your Calculation Below Annual Der Exp 2022 2023 Double-Declining Balance ... (DDB Rate: 100/8 yrs 12.5 SL Rate x 2 25% (Note: Denca Expan. Stoes when the accu Darcos - Est Salvage value) (This does not apply in this situation, but I WILL in subsequent problems) The Amt to DOG X DDB Rates Annual Exp (FYI: in your 1: theat to deals *cont paid in and on: Cost Acoum. Dec the new am to depreciate) Show Caleulation Below Annual Exp Acou. Depreciation 2022 2023 Corp. was organized Jan 01. During the year one these expenditures and receipts were recorded in random order. (Note: The only receipt are the proceeds" in #10) FYI: "proceeds" are basically Cash received which offsets (reduces) your cost 1 Accrued real estate taxes paid at time of purchase of real estate, 2 Real estate taxes on land paid for the current year. 3 Full payment to construction contractor 4. Excavation costs for new factory bldg. 5. Cost of property bought as a factory site (Land 75,000 & Rida 25,000) 6. Cost of parking lots and driveways. Architects fees on factory building plans. 8. Installation cost of fences around property Cost of demolition of the old building to make land (from #5) ready for 9. construction of the new factory. 10 Proceeds from salvage of demolished building. 5,000 7,500 490,000 19,000 100,000 18,000 9,000 6,000 27,000 3,500 Analyze the above transactions using the column headings (below). Insert the amounts under one of three columns. (1st transaction is done for you) Item Other Land Buildings Fill in a specific acct name If you entered an amount under "Other" 1. 2. 3. 4. 5. 6. 7. 8. 10
