Question
The Parker Piano Company purchased a Delivery Truck on January 1, 2025 for $50,000 which included all costs to get the asset ready for use.
The Parker Piano Company purchased a Delivery Truck on January 1, 2025 for $50,000 which included all costs to get the asset ready for use. The truck has an anticipated life of 100,000 miles or 4 years. The estimated residual value at the end of the assets service life is expected to be $2,000. For assets of this type, the company utilizes the straight-line depreciation method.
- Record the purchase of the asset.
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- Complete the depreciation table below.
| Period Ended | Depreciation Expense | Accumulated Depreciation | End of Period Book Value |
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December 31, 2025 |
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December 31, 2026 |
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December 31, 2027 |
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December 31, 2028
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- Record the entry for December 31, 2025 to record the depreciation for the year.
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- Suppose the company sells the van on December 31, 2027 for $18,000 cash. Provide the journal entry to record the sale.
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- Assume the company chooses to use the units-of-production method. Based on the information below, complete the depreciation schedule.
| Year | Miles Driven |
| 2025 | 27,000 |
| 2026 | 24,000 |
| 2027 | 32,000 |
| 2028 | 22,000 |
| Period Ended | Depreciation Expense | Accumulated Depreciation | End of Period Book Value |
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December 31, 2025 |
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December 31, 2026 |
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December 31, 2027 |
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December 31, 2028
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Survey of Accounting
Authors: Thomas P. Edmonds, Frances M. McNair, Philip R. Olds, Bor Yi
3rd Edition
978-1259683794, 77490835, 1259683796, 9780077490836, 978-0078110856
