Depreciation for Partial PeriodsStorm Delivery Company purchased a new delivery truck for $60,000 on April 1, 2019.The truck is expected to have a service life of 10 years or 180,000 miles and a residualvalue of $3,000. The truck was driven 12,000 miles in 2019 and 18,000 miles in 2020.Storm computes depreciation expense to the nearest whole month.Required:1. Compute depreciation expense for 2019 and 2020 using the following methods:(Round your answers to the nearest dollar.)a. Straight-line method20195,700 x5,700 v2020b. Sum-of-the-years'-digits method201910,364 x9,327 x2020c. Double-declining-balance method201912,000 x20209,600 xd. Activity method20193,800 v20205,700 v2. For each method, what is the book value of the machine at the end of 2019? Atthe end of 2020? (Round your answers to the nearest dollar.)a. Straight-line method$ 54,300 x201948,600 x2020b. Sum-of-the-years'-digits method201949,636 x2020$ 40,309 xc. Double-declining-balance method201948,000 x202038,400 Xd. Activity method20192456,200202050,500

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Description: Depreciation for Partial PeriodsStorm Delivery Company purchased a new delivery truck for $60,000 on April 1, 2019.The truck is expected to have a service life of 10 years or 180,000 miles and a residualvalue of $3,000. The truck was driven 12,000 m

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Depreciation for Partial Periods Storm Delivery Company purchased a new delivery truck for $60,000 on April 1, 2019. The truck is expected to have a service life of 10 years or 180,000 miles and a residual value of $3,000. The truck was driven 12,000 miles in 2019 and 18,000 miles in 2020. Storm computes depreciation expense to the nearest whole month. Required: . Compute depreciation expense for 2019 and 2020 using the following methods: (Round your answers to the nearest dollar.) a. Straight-line method 2019 5,700 x 5,700 2020 b. Sum-of-the-years'-digits method 2019 10,364 x 2020 9,327 x c. Double-declining-balance method 2019 12,000 x 2020 9,600 x d. Activity method 3,800 2019 2020 5,700 . For each method, what is the book value of the machine at the end of 2019? At the end of 2020? (Round your answers to the nearest dollar.) a. Straight-line method $ 54,300 x 2019 2020 48,600 x b. Sum-of-the-years'-digits method $ 49,636 x 2019 2020 40,309 x c. Double-declining-balance method 2019 48,000 x 2020 38,400 x d. Activity method 2019 56,200 2020 50,500

Depreciation for Partial Periods Storm Delivery Company purchased a new delivery truck for $60,000 on April 1, 2019. The truck is expected to have a service life of 10 years or 180,000 miles and a residual value of $3,000. The truck was driven 12,000 miles in 2019 and 18,000 miles in 2020. Storm computes depreciation expense to the nearest whole month. Required: . Compute depreciation expense for 2019 and 2020 using the following methods: (Round your answers to the nearest dollar.) a. Straight-line method 2019 5,700 x 5,700 2020 b. Sum-of-the-years'-digits method 2019 10,364 x 2020 9,327 x c. Double-declining-balance method 2019 12,000 x 2020 9,600 x d. Activity method 3,800 2019 2020 5,700 . For each method, what is the book value of the machine at the end of 2019? At the end of 2020? (Round your answers to the nearest dollar.) a. Straight-line method $ 54,300 x 2019 2020 48,600 x b. Sum-of-the-years'-digits method $ 49,636 x 2019 2020 40,309 x c. Double-declining-balance method 2019 48,000 x 2020 38,400 x d. Activity method 2019 56,200 2020 50,500

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter11: Depreciation, Depletion, Impairment, And Disposal

Section: Chapter Questions

Problem 2E: Depreciation Methods Sorter Company purchased equipment for 200,000 on January 2, 2019. The...

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