On January 1, 2017 Baker Company purchased a new delivery van for $84,000 that had an...
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On January 1, 2017 Baker Company purchased a new delivery van for $84,000 that had an expected salvage value of $12,000. Its useful life was estimated to be 4 years or 160,000 miles. Its actual mileage was • 2017 37,800 miles 2018 43,600 miles 2019 39,100 miles • 2020 39,500 miles For Parts 1, 2, and 3, use the specified method to calculate the depreciation expense for each year from 2017 through 2020. In each part, also calculate the accumulated depreciation and book value for each year. Show and label all calculations. Part 1: Straight-Line Method Part 2: Double-Declining Balance Method Part 3: Units-of-Production Method On January 1, 2017 Baker Company purchased a new delivery van for $84,000 that had an expected salvage value of $12,000. Its useful life was estimated to be 4 years or 160,000 miles. Its actual mileage was • 2017 37,800 miles 2018 43,600 miles 2019 39,100 miles • 2020 39,500 miles For Parts 1, 2, and 3, use the specified method to calculate the depreciation expense for each year from 2017 through 2020. In each part, also calculate the accumulated depreciation and book value for each year. Show and label all calculations. Part 1: Straight-Line Method Part 2: Double-Declining Balance Method Part 3: Units-of-Production Method
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Explanation Part 1 Straight line depreciation Cost Salvage value Useful life 84000 120004 18000 per ... View the full answer
Related Book For
Financial Reporting and Analysis
ISBN: 978-1259722653
7th edition
Authors: Lawrence Revsine, Daniel Collins, Bruce Johnson, Fred Mittelstaedt, Leonard Soffer
Posted Date:
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