Assume that Dar Heating and Cooling Co. purchases a heavy-duty washer for $23,000 cash, plus sales...

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Assume that Dar Heating and Cooling Co. purchases a heavy-duty washer for $23,000 cash, plus sales taxes of $1,000 and delivery costs of $1,500. The buyer also pays $500 for painting and lettering, $600 for an annual insurance policy, and $100 for a motor vehicle license. The truck estimated useful life 4 years and resale value $3,000 at the end of year 4. The total estimated working hours are 2,000 of which the first year 500 hours, second 1,200 hours, and third year 300 hours. Required: i. 11. Determine the cost of the truck and record the transaction. Compute the depreciation expense, accumulated depreciation, and book value over the useful life applying the three depreciation methods. Assume that Dar Heating and Cooling Co. purchases a heavy-duty washer for $23,000 cash, plus sales taxes of $1,000 and delivery costs of $1,500. The buyer also pays $500 for painting and lettering, $600 for an annual insurance policy, and $100 for a motor vehicle license. The truck estimated useful life 4 years and resale value $3,000 at the end of year 4. The total estimated working hours are 2,000 of which the first year 500 hours, second 1,200 hours, and third year 300 hours. Required: i. 11. Determine the cost of the truck and record the transaction. Compute the depreciation expense, accumulated depreciation, and book value over the useful life applying the three depreciation methods.

Answer rating: 100% (QA)

i To determine the cost of the truck and record the transaction Cost of Truck Purchase Price Sales Taxes Delivery Costs Painting and Lettering Insurance Motor Vehicle License Cost of Truck 23000 1000 ... View the full answer