Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Treadwell Co. uses the units of activity method for depreciation of its delivery vehicle. It paid $60,000 for the vehicle and expects to use
Treadwell Co. uses the units of activity method for depreciation of its delivery vehicle. It paid $60,000 for the vehicle and expects to use it for 5 years before trading it in on a new one. The car dealer has agreed to buy it back for $5,095 if it has less than $200,190 km wich is within Treadwell's expectation of km per year on the vehicle. In year 1 the truck logged 38,000 km on the odometer. In year 2 the actual mileage was 28,000 km. In year 3 the actual mileage was 55,000 km. In year 4 the actual mileage was 33,000 km and in year 5 the actual mileage is reaching 20,000 km and there are less than 90 days until the end of the year. Round your answer to the nearest dollar (no cents). Required 1: What depreciation expense will Treadwell Co record in year 2? $ Required 2: What depreciation expense will Treadwell Co record in year 3? $ Required 3: What depreciation expense will Treadwell Co record in year 4? $ Required 4: What accumulated depreciation will Treadwell Co report at the end of year 2? $ Required 5: What accumulated depreciation will Treadwell Co report at the end of year 3? $ Required 6: What accumulated depreciation will Treadwell Co report at the end of year 4? $
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Treadwell Co Delivery Vehicle Depreciation Units of Activity Method Given Information Vehicle cost 6...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started