Giant Constructions Ltd purchased a truck costing $125,000. The truck was shipped to the company at...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Giant Constructions Ltd purchased a truck costing $125,000. The truck was shipped to the company at a cost of $2050. It is expected to have a residual value of $6,050 at the end of its useful life of 10 years or 290,000 kilometres. The firm's financial year ends on 30 June each year. Ignore GST. Required: a) Assume the truck was purchased on 1 July 2019 and that the accounting period ends on 30 June. Calculate the depreciation expense for the third year using each of the following depreciation methods (6 marks) • straight-line • diminishing balance (depreciation rate has been calculated as 27%) • units of production (assume the truck was driven 34,000 km, 56,000 km, 68,200 km respectively in year 1, 2 and 3). ANSWER a): b) Prepare the relevant section of the financial statement that shows how the truck would appear in the financial statement prepared at the end of the 3d financial year using the straight-line method. (2 marks) ANSWER b): HIS001A Final Assessment T3 2021 Giant Constructions Ltd purchased a truck costing $125,000. The truck was shipped to the company at a cost of $2050. It is expected to have a residual value of $6,050 at the end of its useful life of 10 years or 290,000 kilometres. The firm's financial year ends on 30 June each year. Ignore GST. Required: a) Assume the truck was purchased on 1 July 2019 and that the accounting period ends on 30 June. Calculate the depreciation expense for the third year using each of the following depreciation methods (6 marks) • straight-line • diminishing balance (depreciation rate has been calculated as 27%) • units of production (assume the truck was driven 34,000 km, 56,000 km, 68,200 km respectively in year 1, 2 and 3). ANSWER a): b) Prepare the relevant section of the financial statement that shows how the truck would appear in the financial statement prepared at the end of the 3d financial year using the straight-line method. (2 marks) ANSWER b): HIS001A Final Assessment T3 2021
Expert Answer:
Answer rating: 100% (QA)
a Straight line method Diminishing balance method b Abstract Balance sheet Cost of truck 12500000 Ra... View the full answer
Related Book For
Financial Accounting
ISBN: 9781618533111
6th Edition
Authors: Michelle L. Hanlon, Robert P. Magee, Glenn M. Pfeiffer, Thomas R. Dyckman
Posted Date:
Students also viewed these accounting questions
-
Equipment costing $130,000 is expected to have a residual value of $10,000 at the end of its six year useful life. The equipment is metered so that the number of units processed is counted. The...
-
Luc owns a wholesale furniture store. His financial year ends on 30 June. He provided the following trial balance on 30 June 201: Additional information: 1. At 30 June 201: Inventory was valued at...
-
Ayesha is a business adviser. Her financial year ends on 30 September. She provided the following trial balance at 30 September 203: Prepare Ayeshas income statement for the year ended 30 September...
-
The Chicago Omni Hotel is a 750-room luxury hotel offering guests the finest facilities in downtown Chicago. The hotel is organized into four departments: lodging, dining, catering, and retail...
-
Design one or more open-ended response questions to measure reactions to public smartphone usage by others. What advantages and disadvantages does the open-ended format provide?
-
Some economists believe that firms rarely attempt predatory pricing because it would be a very risky act even if it were legal. Why may this be so?
-
Define business roles and give three examples for a bank.
-
The following information was drawn from the annual report of Sierra Home Builders (SHB). Required a. Compute the percentage of growth in net income from 2016 to 2017. Can stockholders expect a...
-
Sage Inc. experienced the following transactions for Year 1, its first year of operations: 1. Issued common stock for $100,000 cash. 2. Purchased $195,000 of merchandise on account. 3. Sold...
-
"Part 1: The Performance Lawn Equipment database contains data needed to develop a pro forma income statement. Dealers selling PLE products all receive 18% of sales revenue for their part of doing...
-
What does it mean to call a message "highly person-centered," and why does the person- centeredness of a message matter, according to Constructivism? In addition, how is the use of person-centered...
-
Topic: Social Engineering Description: Answer each question below with a few sentences 1. What is Phishing? What are some of the main types of phishing? 2. How can you identify Phishing? Why is...
-
Is Big Spaceship, as currently organized truly ready to "go big?" Why or why not? If you were Michael Lebowitz, what would you do to ensure that Big Spaceship could grow in a sustainable way and at...
-
In the video, The Art of Following (2017), Dr. Bentley shares the connection of leader and follower through music. In essence, she is teaching the audience followership. Similarly, Northouse (2022)...
-
Q1. Identify and explain the major factors motivating firms' international location decision strategies (e.g., manufacturing internationally) in many countries such as the UAE. Q2. Identify and...
-
Explain how the report is organized. Does it start with a general introductory paragraph? Does it pull the reader in with a surprising bit of news? How is the report divided up? What ideas about...
-
The objective is to utilize ratio analysis to make financial decisions. ? We learned that ratios are used extensively in financial management to help determine the overall financial health of an...
-
For the following exercises, find the area of the triangle. Round to the nearest hundredth. 22 50 36
-
Over what time period should the cost of providing retirement benefits to employees be expensed?
-
Moser Company began business on March 1, 2018. At that time, it issued 20,000 shares of $60 par value, 7% cumulative preferred stock, and 100,000 shares of $5 par value common stock. Through the end...
-
Companies prepare four primary financial statements. What are those financial statements and what information is typically conveyed in each?
-
Brian Rafferty ingested finasteride, a drug prescribed to him to treat an enlarged prostate. Finasteride is a generic version of Proscar, a drug manufactured by Merck. Some time after he started to...
-
Fun-Tastic Shows, Inc., is a company that hosts carnivals and similar events. Susan Swartwood, Crystal Groth, and a minor (named in the case as M.G.S.) attended Fun-Tastics Rhododendron Festival in...
-
Kronenberger Burgoyne, LLP, was a law firm with two equity partners who agreed to equal ownership as of 2009. Before 2009, Kronenberger had owned a majority interest in the firm, and when, in 2011,...
Study smarter with the SolutionInn App