Penny Corp. purchased a new car on March 1, 2016 for $25,000. The estimated useful life of
Question:
Required: Calculate the depreciation for 2016 and 2017 using
1. The straight-line method
2. Usage method (kms.)
3. Double-declining balance method.
Assume where applicable that the company uses the ½ year rule to calculate depreciation expense in the year of acquisition and disposal.
Step by Step Answer:
1 Straightline method 25000 5000 4000 per year 5 years 2016 depreciation 4000 2000 2017 depreci...View the full answer
Accounting Introduction To Financial Accounting
ISBN: 9781517089719
1st Edition
Authors: Henry Dauderis, David Annand
Related Video
In accounting terms, depreciation is defined as the reduction of the recorded cost of a fixed asset in a systematic manner until the value of the asset becomes zero or negligible. An example of fixed assets are buildings, furniture, office equipment, machinery, etc. The land is the only exception that cannot be depreciated as the value of land appreciates with time. Depreciation allows a portion of the cost of a fixed asset to be the revenue generated by the fixed asset. This is mandatory under the matching principle as revenues are recorded with their associated expenses in the accounting period when the asset is in use. This helps in getting a complete picture of the revenue
Students also viewed these Accounting questions
-
Garns Photography Company purchased a new car on July 1, 2011, for $26,000. The estimated life of the car was five years or 110,000 miles, and its salvage value was estimated to be $1,000. The car...
-
Adria Lopez created Success Systems on October 1, 2013. The company has been successful, and its list of customers has grown. To accommodate the growth, the accounting system is modified to set up...
-
Penny Cassidy has decided to start her business, Pennys Pool Service & Supply, Inc. (PPSS). There is much to do when starting a new business. Here are some transactions that have occurred in the...
-
Watch the sample Persuasive Presentation Video link given in this module on Success is a Continuous Journey by Richard St. John .Answer the following questions in detail and use complete sentences....
-
Thompson Distributors packages and distributes industrial supplies. A standard shipment can be packaged in a class A container, a class K container, or a class T container. A single class A container...
-
At t = 0, a transverse pulse in a wire is described by the function Y = 6/X2 + 3 where x and y are in meters. Write the function y(x, t) that describes this pulse if it is traveling in the positive x...
-
Describe various types of gear trains.
-
An analysis of comparative balance sheets, the current years income statement, and the general ledger accounts of Solomon Corp. uncovered the following items. Assume all items involve cash unless...
-
On 2 October 20X4, a national hardware retailer, One Hardware Corporation, announced a formal plan to refocus its operations. As part of the plan, management decided to sell its portfolio of...
-
Hal Lelulia is the sole shareholder of Microcosm Ltd., a corporation with an October 31 year-end. Microcosm Ltd. produces trivia games. Hal started the corporation with an initial capital investment...
-
Mayr Inc. purchased a machine for its factory on June 6, 2016 for $110,000. The machine is expected to have an estimated useful life of ten years with a residual value of $10,000. Assume the company...
-
Global Flow Inc. purchased a computer on January 1, 2016 for $3,000 cash. It had an estimated useful life of three years and no residual value. Global Flow made the following changes to the computer:...
-
Investigate the raceway pond and photo bioreactor approaches to microalgal biomass production. Discuss the relative advantages and challenges of these approaches, and the typical realized rate of...
-
When Does a Bilateral Agreement Go into Effect? Suppose in the previous example, Sailors Maritime had said to Barnes and Layton, We will consider your written acceptance of this new proposal as...
-
A man runs at a speed of 5 m / s to overtake a standing bus. When he is 4 m behind the door ( t = 0 ) , the bus moves forward and continues with a constant acceleration of 1 . 1 m / s ^ 2 . How long...
-
A bodybuilder lifts a 280 N set of weights from ground level to a position over his head, a vertical distance of 1.85 m. How much work (in 3) does the bodybuilder do? Assume the weights are moved at...
-
What is the final angular position of an object if it has an initial angular position of -0.28 rad relative to some zero position, an initial angular velocity of 3 rad/s, an angular acceleration of...
-
Company have accumulated a portfolio currently valued at $875,000. They believe that they can earn an after-tax annual return of 8% on these funds. They would like to retire in 15 years. 1. What will...
-
What stakeholder group(s) is affected? What lasting effects will be felt by (a) the company and (b) this stakeholder group(s)?
-
In July 2013, cnet.com listed the battery life (in hours) and luminous intensity (i. e., screen brightness, in cd/m2) for a sample of tablet computers. We want to know if screen brightness is...
-
Following are the amounts of the assets and liabilities of St. Kitts Travel Agency at December 31, 2010, the end of the current year, and its revenue and expenses for the year. The capital of Robin...
-
Ashley Rhymer established Fair Play Financial Services on January 1, 2010. Fair Play Financial Services offers financial planning advice to its clients. The effect of each transaction and the...
-
Swan Dry Cleaners is owned and operated by Peyton Keyes. A building and equipment are currently being rented, pending expansion to new facilities. The actual work of dry cleaning is done by another...
-
Please view the video and think through what these supply chains may look like if these technologies or practices become ubiquitous. Let me know your thoughts within 500 word limit in the context of...
-
How do genomic imprinting and parent-of-origin effects shape gene expression patterns, and what are the implications for diseases associated with disruptions in imprinting, such as Prader-Willi and...
-
Ronald Powers, a well-known local entrepreneur, owned several businesses that filed for bankruptcy from 2010 to 2015. Last year, Powers established R. P. Properties, Inc. Powers is the sole...
Study smarter with the SolutionInn App