Question
The following information is available for Queen Company, which has an accounting year-end on December 31, 2011. 1. A delivery truck was purchased on June
The following information is available for Queen Company, which has an accounting year-end on December 31, 2011.
1. A delivery truck was purchased on June 1, 2009, for $100,000. It was estimated to have a $10,000 salvage value after being driven 120,000 miles. During 2011, the truck was driven 20,000 miles. The units-of-activity method of depreciation used.
2. A building was purchased on January 1, 1984, for $3,000,000. It is estimated to have a $30,000 salvage value at the end of its 40-year useful life. The straight-line method of depreciation is being used.
3. Store equipment was purchased on January 1, 2010, for $210,000. It was estimated that the store equipment would have a $21,000 salvage value at the end of its 5-year useful life.
The double-declining balance method of depreciation is being used.
Instructions
Complete the table shown below by filling in the appropriate amounts.
Assets | Accumulated Depreciation 1/1/11 | Depreciation Expense for 2011 | Book Value at 12/31/11 |
Delivery truck | $ 39,000 | $ | $ |
Building | $2,004,750 | $ | $ |
Store equipment | $ 84,000 | $ | $ |
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