On January 1, 2020, Countryside Resorts, Inc. purchased a luxury tour bus to be used to...
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On January 1, 2020, Countryside Resorts, Inc. purchased a luxury tour bus to be used to transport guests to and from the airport and to local events. The purchase price was $320,000 plus $27,200 in sales tax. Countryside paid a company $1,200 to deliver the bus to it's property plus $900 for transport insurance. In addition, the bus was painted with the Countryside colors and logo at a cost of $2,300. Motor vehicle registration fees were $400. Countryside incurred repairs and maintenance during the year in the amount of $2,800 along with $4,800 in vehicle insurance. 1. At what amount should Countryside capitalize the bus? 2a. Using the straight-line method of depreciation over a 5 year life, and a residual value of $100,000, complete the following: Depreciation Expense Year 1 Year 2 Year 3 2b. Assume the asset is sold at the end of Year 3 for $150,000. What is the gain or loss on the sale? 3a. Using the double-declining-balance method of depreciation over a 5 year life, and a residual value of $100,000, complete the following: Depreciation Expense Year 1 Year 2 Year 3 3b. Assume the asset is sold at the end of Year 3 for $150,000. What is the gain or loss on the sale? miles driven each year in the first 3 years. 4a. The bus will be driven 180,000 miles over it's life with 40, Using the units-of-production method of depreciation over a 5 year life, and a residual value of $100,000, complete the following: What is the cost per unit? |(round 3 decimal places) Depreciation Expense Year 1 Year 2 Year 3 4b. Assume the asset is sold at the end of Year 3 for $150,000. What is the gain or loss on the sale? On January 1, 2020, Countryside Resorts, Inc. purchased a luxury tour bus to be used to transport guests to and from the airport and to local events. The purchase price was $320,000 plus $27,200 in sales tax. Countryside paid a company $1,200 to deliver the bus to it's property plus $900 for transport insurance. In addition, the bus was painted with the Countryside colors and logo at a cost of $2,300. Motor vehicle registration fees were $400. Countryside incurred repairs and maintenance during the year in the amount of $2,800 along with $4,800 in vehicle insurance. 1. At what amount should Countryside capitalize the bus? 2a. Using the straight-line method of depreciation over a 5 year life, and a residual value of $100,000, complete the following: Depreciation Expense Year 1 Year 2 Year 3 2b. Assume the asset is sold at the end of Year 3 for $150,000. What is the gain or loss on the sale? 3a. Using the double-declining-balance method of depreciation over a 5 year life, and a residual value of $100,000, complete the following: Depreciation Expense Year 1 Year 2 Year 3 3b. Assume the asset is sold at the end of Year 3 for $150,000. What is the gain or loss on the sale? miles driven each year in the first 3 years. 4a. The bus will be driven 180,000 miles over it's life with 40, Using the units-of-production method of depreciation over a 5 year life, and a residual value of $100,000, complete the following: What is the cost per unit? |(round 3 decimal places) Depreciation Expense Year 1 Year 2 Year 3 4b. Assume the asset is sold at the end of Year 3 for $150,000. What is the gain or loss on the sale?
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1 At what amount should Countryside capitalize the bus ANSWER 355700 DETAILED WORKING Purchase Price 320000 Sales Tax 27200 Delivery Cost 1200 Transpo... View the full answer
Related Book For
Intermediate Accounting IFRS
ISBN: 978-1119372936
3rd edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
Posted Date:
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