7. Gamma Corporation purchased a vehicle on August 9, 2015 for $87,000. The estimated salvage value...

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7. Gamma Corporation purchased a vehicle on August 9, 2015 for $87,000. The estimated salvage value (residual value) was $9,000 and its life was estimated to be either 5 years or 210,800 kilometers. Gamma uses the nearest whole month process and records depreciation only at year-end (December 31"). Required: 1. calculate the amount of depreciation for 2015 and 2016 using: (6 marks) a) straight-line depreciation b) units of production (2015 usage: 23,000 km 2016 usage: 49,000 km) c) double-declining balance 2. Journalize the 2015, straight-line depreciation. (2 marks) 7. Gamma Corporation purchased a vehicle on August 9, 2015 for $87,000. The estimated salvage value (residual value) was $9,000 and its life was estimated to be either 5 years or 210,800 kilometers. Gamma uses the nearest whole month process and records depreciation only at year-end (December 31"). Required: 1. calculate the amount of depreciation for 2015 and 2016 using: (6 marks) a) straight-line depreciation b) units of production (2015 usage: 23,000 km 2016 usage: 49,000 km) c) double-declining balance 2. Journalize the 2015, straight-line depreciation. (2 marks)

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