Vorsche Motor Company reported results for the fiscal year ended 12/31/2013, which included the following disclosures:...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Vorsche Motor Company reported results for the fiscal year ended 12/31/2013, which included the following disclosures: Select balances as of 12/31/2013 Gross PP&E 28,519.0 Net PP&E 16,597.0 Non-depreciable PP&E (i.e. land) 1,650.0 Accumulated depreciation 11,922.0 Net PP&E (excl. land) 14,947.0 In addition, the company reported that during the fiscal year ended 12/31/2013, depreciation expense was $5,797.0. The company also provided forecasts for capex and estimates for depreciation from existing PP&E over the next 5 years: Projections Year ended: 12/31/2014 12/31/2015 12/31/2016 12/31/2017 12/31/2018 Capital expenditures 8,969.0 10,738.2 11,219.3 11,771.3 12,405.6 Depreciation from existing PP&E 4,982.3 3,985.9 2,989.4 1,992.9 996.5 The company uses straight line accounting for depreciation and a useful life of 5 years on new purchases. Assume that all capital expenditures are made in the middle of each fiscal year. Question: Calculate depreciation expense for the year ending 12/31/2018. Vorsche Motor Company reported results for the fiscal year ended 12/31/2013, which included the following disclosures: Select balances as of 12/31/2013 Gross PP&E 28,519.0 Net PP&E 16,597.0 Non-depreciable PP&E (i.e. land) 1,650.0 Accumulated depreciation 11,922.0 Net PP&E (excl. land) 14,947.0 In addition, the company reported that during the fiscal year ended 12/31/2013, depreciation expense was $5,797.0. The company also provided forecasts for capex and estimates for depreciation from existing PP&E over the next 5 years: Projections Year ended: 12/31/2014 12/31/2015 12/31/2016 12/31/2017 12/31/2018 Capital expenditures 8,969.0 10,738.2 11,219.3 11,771.3 12,405.6 Depreciation from existing PP&E 4,982.3 3,985.9 2,989.4 1,992.9 996.5 The company uses straight line accounting for depreciation and a useful life of 5 years on new purchases. Assume that all capital expenditures are made in the middle of each fiscal year. Question: Calculate depreciation expense for the year ending 12/31/2018.
Expert Answer:
Answer rating: 100% (QA)
To calculate the depreciation expense for the year ending 12312018 we need to consider the following ... View the full answer
Related Book For
Advanced Financial Accounting
ISBN: 978-0137030385
6th edition
Authors: Thomas Beechy, Umashanker Trivedi, Kenneth MacAulay
Posted Date:
Students also viewed these accounting questions
-
Read the case study "Southwest Airlines," found in Part 2 of your textbook. Review the "Guide to Case Analysis" found on pp. CA1 - CA11 of your textbook. (This guide follows the last case in the...
-
The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...
-
On November 8, 2007, AMCON Distributing Company (AMCON or Company) issued a press release announcing its financial results for the fiscal year ended September 30, 2007. Included was the following...
-
Coin Flips You flip a coin 100 times and get 58 heads and 42 tails. Calculate the chi-square statistic by hand showing your work, assuming the coin is fair.
-
The following partially completed process cost summary describes the July production activities of Anton Company. Its production output is sent to its warehouse for shipping. Prepare its process cost...
-
Leona Figueroa is a new employee in the payroll department of Octolium Computers. After working at the company for one week, she asks you why it is so important to submit new-hire documentation. What...
-
Refer to information in QS 21-14. Compute the overhead volume variance for November and classify it as favorable or unfavorable. Data From QS 21-14 AirPro Corp. reports the following for November....
-
In a letter to the audit committee of the Cline Wholesale Company, Jerry Schwartz, CPA, informed them of material weaknesses in the control of inventory. In a separate letter to senior management, he...
-
Use conversion algorithm to convert ER diagram to Relational Model Or All ER to relational model intermediatory conversion steps with final relational model (i.e. step 4) RUberID REmail Passwd...
-
A large elevated tank (Tank 1) is being used to supply water at 60F to two tanks at a lower elevation (Tanks 2 and 3) as shown in Figure P4.28. All pipes are 5-nom sch 40 commercial steel. The...
-
1) The maize mature in Mp humalanga is employed primarily to feed placental mammal. Suppose that this "foot and mouth disease" scare were to steer to a big call the scale of oxen herds nationwide....
-
The textbook cites four factors the firm cannot control regarding the cost of capital. These are interest rates, credit crisis, market risk premium, and tax rates. Pick at least one of these factors...
-
Waller, Inc., is trying to determine its cost of debt. The firm has a debt issue outstanding with 12 years to maturity that is quoted at 103 percent of face value. The issue makes semiannual payments...
-
Wong, owner of a small business, has a used stamping machine for sale. He offers to sell it to Vasquez for $25,000. Wong dies prior to Vasquez's acceptance. At the time he accepts he is unaware of...
-
java Specifications You will create the following classes: TestClassComposite - holds main and the array or arrayList Date - has a month, day, and year Name - has a first name, middle initial, and...
-
Calculate present value of the retirement benefit: Stan elects to receive his retirement benefit over 10 years. The first monthly payment of 2000 will be paid one month from now and each subsequent...
-
Need help with a-c. Thanks. (5%) Problem 17: During the day, heat from the Sun is absorbed by the Earth's surface. It is then radiated into space at night. A 33% Part (a) Calculate the rate, in...
-
MgO prevents premature evaporation of Al in a furnace by maintaining the aluminum as Al2O3. Another type of matrix modifier prevents loss of signal from the atom X that readily forms the molecular...
-
Canada Cola Inc. (CCI) is a public company engaged in the manufacture and distribution of soft drinks across Canada. Its primary product is Cana Cola (Fresh as a Canadian stream), which is a top...
-
How does the process of consolidation differ when the parent company has used the equity method of recording its investment in a subsidiary, as compared to consolidation when the cost method of...
-
Miltonics Potions Ltd. (MPL) is a privately held Ontario corporation engaged in the development and marketing of patent medicines. In early 20X1 the companys research chemists began working on a...
-
Preventing a user who approves a configuration change from being the person who implements the change is an example of which of the following? A. Rotation of duties B. Least privilege C. Segregation...
-
A onedimensional heat conduction problem can be expressed by the following differential equation: where \(k\) is the thermal conductivity, \(T(x)\) is the temperature, and \(Q\) is heat generated per...
-
Consider a simply supported beam of length \(L\) subjected to a uniformly distributed transverse load \(p(x)=p_{0}\). Use the Rayleigh-Ritz method to determine the transverse deflection \(v(x)\) of...
Study smarter with the SolutionInn App