Montello Inc. purchases a delivery truck for $25,000. The truck has a salvage value of $6,000 and
Question:
Montello Inc. purchases a delivery truck for $25,000. The truck has a salvage value of $6,000 and is expected to be driven for ten years. Montello uses the straight-line depreciation method. Calculate the annual depreciation expense.
Step by Step Answer:
Depreciable value Cost Salvage value 25000 6000 19000 Depreciation expe...View the full answer
Principles Of Accounting Volume 1 Financial Accounting
ISBN: 9781593995942
1st Edition
Authors: Mitchell Franklin, Patty Graybeal, Dixon Cooper, OpenStax
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 Business questions
-
Montello Inc. purchases a delivery truck for $25,000. The truck has a salvage value of $6,000 and is expected to be driven for 125,000 miles. Montello uses the units-of production depreciation...
-
Montello Inc. purchases a delivery truck for $25,000. The truck has a salvage value of $6,000 and is expected to be driven for 125,000 miles. Montello uses the units-of-production depreciation...
-
Concentric shells r = 20 cm and r = 30 cm are held at V = 0 and V = 50, respectively. If the space between them is filled with dielectric material ( = 3.10, a = 1012 S/m), find: (a) V, E, and D, (b)...
-
Martha's current marginal utility from consuming orange juice is 75 utils per ounce and her marginal utility from consuming coffee is 50 utils per ounce. If orange juice costs 25 cents per ounce and...
-
What type of capacity assumes ideal operating conditions?
-
Entrepreneur magazine ranks franchises. Among the factors that the magazine uses in its rankings are growth rate, number of locations, start-up costs, and financial stability. A recent ranking listed...
-
Pryor Sales, Inc., is authorized to issue 190,000 shares of common stock and 10,000 shares of preferred stock. During its first year, the business completed the following stock issuance transactions:...
-
Law is a pervasive part of our lives; regulations shape our daily activities, govern our interactions with one another and our relationships to the planet and to other nations. Often our legal...
-
Eli Lilly owns the patent to Xigris, which is the only approved drug for the treatment of sepsis. Sepsis is a severe illness caused by a bacterial infection, which may lead to the failure of multiple...
-
Speedy Delivery has a very lazy accountant. When originally setting up the delivery trucks into the accounting system, the accountant did not want to calculate the expected salvage value for each...
-
Montello Inc. purchases a delivery truck for $15,000. The truck has a salvage value of $3,000 and is expected to be driven for eight years. Montello uses the straight-line depreciation method....
-
What is the half-life of Ra-226?
-
Develop the appropriate primary research question to be associated with this design. Develop a hypothetical research scenario that would necessitate the use of the Action Research Approach and a...
-
Dr. Dirk Mallard donated stock he purchased six months ago to his employer, State University. He purchased the stock for \($50,000.\) The current fair market value is \($60,000.\) Dr. Mallards...
-
You work in Walt Disney Companys corporate finance and treasury department and have been assigned to the team estimating Disneys WACC. You must estimate this WACC in preparation for a team meeting...
-
In a certain field line diagram, a single electron is drawn that has four field lines terminating on it. If a closed surface in another part of this diagram is shown to have 16 field lines coming out...
-
You are given a uniformly charged spherical shell that has a radius \(R\) and carries a positive charge \(q\). In order to measure the electric field magnitude inside, you drill a small hole that...
-
Write parametric equations for each parabola in Exercise 4. a. b. c. d.
-
Draw and label the E and Z isomers for each of the following compounds: 1. CH3CH2CH==CHCH3 2. 3. 4. CH,CH2C CHCH2CH Cl CH3CH2CH2CH2 CH CH2CCCH2CI CHCH3 CH3 HOCH CH CCC CH O-CH C(CH
-
Calculate the dividends-received deduction and taxable income for each independent scenario below. Assume there are no other income or deduction items. a. During the current year, Purple Corporation...
-
On May 15 of the current year, the board of directors of Georgia Corporation authorized a $40,000 donation to a qualified charity. The corporation donated the $40,000 to the charity on December 1 of...
-
Calculate Ajax Corporations regular tax liability for the following amounts of taxable income: a. $90,000 b. $300,000 c. $5 million d. $12 million e. $17 million f. $20 million g. Alternatively, for...
-
How is decision-making in organizations best supported by Management Accounting (a descriptive nature) and how should it be supported by Management Accounting (a prescriptive nature)? Is there a gap...
-
Discuss the thermodynamic principles governing the separation of azeotropic mixtures using advanced distillation techniques such as pressure swing distillation, extractive distillation, and hybrid...
-
respond to the discussion In the IMA article, Activity-Based Costing (ABC) is explained as a cost allocation technique that traces indirect costs (often referred to as "overhead") to specific cost...
Study smarter with the SolutionInn App