Unit 6 Assignment (5 ) Cole Corporation purchased a delivery van on March 18th 2021 Assume this van was the companys only capital asset and that the company uses the half year rule in the year of acquisition and disposal of capital assets The following information is available Cost Estimated useful life Residual value $30,000 5 years or 200,000 kms $12,000 The van was driven 20,000 km in 2021 Required 1 Calculate the depreciation for 2021 under each of the following methods a Usage b Straight line c Double declining balance 2 Compare the depreciation expense and carrying amount for 2021 under each of these methods Create a table that clearly shows the depreciation expense and carrying values 3 If one of managements objectives is to minimize 2021 net income, what method should be adopted use excel

Question

Unit 6 Assignment (5 ) Cole Corporation purchased a delivery van on March 18th 2021  Assume this van was the companys only capital asset and that the company uses the half year rule in the year of acquisition and disposal of capital assets  The following information is available  Cost Estimated useful life Residual value $30,000 5 years or 200,000 kms $12,000 The van was driven 20,000 km in 2021  Required  1  Calculate the depreciation for 2021 under each of the following methods  a  Usage b  Straight line c  Double declining balance 2  Compare the depreciation expense and carrying amount for 2021 under each of these methods  Create a table that clearly shows the depreciation expense and carrying values  3  If one of managements objectives is to minimize 2021 net income, what method should be adopted  use excel

Accepted Answer

The Answer is in the image, click to view ...

Unit 6 Assignment (5%) Cole Corporation purchased a delivery van on March 18th 2021. Assume this van

Question:

International Marketing And Export Management

Unit 6 Assignment (5%) Cole Corporation purchased a delivery van on March 18th 2021. Assume this van

Question:

Expert Answer:

The Answer is in the image, click to view ... View the full answer

International Marketing And Export Management

Students also viewed these Accounting questions