Question
Speedy Delivery Service bought two new trucks. The following table shows the cost, scrap value, estimated life (in miles), and mileage for the first year.
Speedy Delivery Service bought two new trucks. The following table shows the cost, scrap value, estimated life (in miles), and mileage for the first year. Using the straight-line method based on mileage driven, compute the first year's depreciation and the book value at the end of the first year for each truck. Do not round intermediate calculations. Round final answer to the nearest whole dollar.
Original Cost | Scrap Value | Estimated Life (miles) | Mileage for First Year | Depreciation for First Year | Book Value after 1 Year |
a. $47,700 | $3,500 | 170,000 | 21,300 | $______ | $_____ |
b. $24,000 | $800 | 80,000 | 11,900 | $_______ | $______ |
Machinery purchased from Telecom, Inc., by Blazedales cost $67,200. Depreciation was determined by the double-declining-balance method for an estimated life of 16 years. Do not round annual rate. Round other interim calculations and final answer to two decimal places.
a. Compute the book value after 4 years. $___________
b. Compute the total depreciation after 6 years. $___________
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