1. XYZ Corporation. runs boats along the coats of British Columbia. They purchased a cruising boat...

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1. XYZ Corporation. runs boats along the coats of British Columbia. They purchased a cruising boat on May 2, 2023, for cash of $80,000. Its estimated useful life was 5 years or 20,000 hours with a residual value o e of $10,000. The company's year end is December 31. (27 Marks) Assume actual hours of service were: 2023: 2,400 2024: 3,000 2025: 5,500 Calculate depreciation expense for the first three years of the asset's useful life by completing the following table using the different depreciation methods and totaling each column as the company wants to see the differences. Calculate the depreciation to the nearest whole month, and round depreciation amounts to the nearest whole dollar. Year 2023 2024 2025 Total Straight Line Method Double-Declining Balance Method Units of Production Method Since the boat company is going to use the cruising boat evenly over its 5-year life it has decided to go with the straight-line method On January 1, 2026, XYZ Corporation realized that it would be able to use the cruising boat for a total of 6 years with a residual value of $8,000 Calculate and record the amortization for December 31, 2026. Round to the nearest dollar. General Journal Date Dec 31 Account Title and Explanation PR Debit Credit On January 1, 2027, the company sold the cruising boat for $60,000 Record the journal entry for the sale of the bus General Journal Date Dec 31 Account Title and Explanation PR Debil Credit 1. XYZ Corporation. runs boats along the coats of British Columbia. They purchased a cruising boat on May 2, 2023, for cash of $80,000. Its estimated useful life was 5 years or 20,000 hours with a residual value o e of $10,000. The company's year end is December 31. (27 Marks) Assume actual hours of service were: 2023: 2,400 2024: 3,000 2025: 5,500 Calculate depreciation expense for the first three years of the asset's useful life by completing the following table using the different depreciation methods and totaling each column as the company wants to see the differences. Calculate the depreciation to the nearest whole month, and round depreciation amounts to the nearest whole dollar. Year 2023 2024 2025 Total Straight Line Method Double-Declining Balance Method Units of Production Method Since the boat company is going to use the cruising boat evenly over its 5-year life it has decided to go with the straight-line method On January 1, 2026, XYZ Corporation realized that it would be able to use the cruising boat for a total of 6 years with a residual value of $8,000 Calculate and record the amortization for December 31, 2026. Round to the nearest dollar. General Journal Date Dec 31 Account Title and Explanation PR Debit Credit On January 1, 2027, the company sold the cruising boat for $60,000 Record the journal entry for the sale of the bus General Journal Date Dec 31 Account Title and Explanation PR Debil Credit

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Answer 1 Depreciation Expense Calculation Table Year StraightLine Method DoubleDeclining Balance Met... View the full answer