Silver Mines has a December 31 year end, and records depreciation annually. Silver Mines acquired a...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Silver Mines has a December 31" year end, and records depreciation annually. Silver Mines acquired a big mining truck on Jan 2018. Transactions related to this truck: A. January 1, 2018: Paid $850,000 to acquire a large mining truck. The manufacturer advertises that the truck normally last for 10 years and will have no salvage value at the ends of its life. Silver plans on using the truck for 5 years, after which they will likely sell if for $100,000. B. January 1, 2018: Paid $22,500 to Truck-School to train the new drivers how to drive the truck. C. January 1, 2018: Paid $15,000 to have the truck delivered to the mining site. D. January 1, 2021: Paid $30,000 to upgrade the to truck's transmission. This upgrade will not result in an extension of the life of the vehicle, but will allow the truck to tow heavier trailers. E. Each year $10,000 was spent for routine maintenance such as oil changes, filters, lubrication. For simplicity purposes, assume that these transactions all took place on December 30th of each year. F. January 1, 2022: The truck was sold for scrap for $20,000 Required: A. Which of the costs incurred on January 1 2018 should be posted to the asset account called "Truck" account, and which costs should be expensed. B. What is the depreciation expense for each year. C. What is the net-book-value of the truck at the end of each year (2018, 2019, 2020 and 2021). X D. Show the joumal entry for the disposal of the truck. Silver Mines has a December 31" year end, and records depreciation annually. Silver Mines acquired a big mining truck on Jan 2018. Transactions related to this truck: A. January 1, 2018: Paid $850,000 to acquire a large mining truck. The manufacturer advertises that the truck normally last for 10 years and will have no salvage value at the ends of its life. Silver plans on using the truck for 5 years, after which they will likely sell if for $100,000. B. January 1, 2018: Paid $22,500 to Truck-School to train the new drivers how to drive the truck. C. January 1, 2018: Paid $15,000 to have the truck delivered to the mining site. D. January 1, 2021: Paid $30,000 to upgrade the to truck's transmission. This upgrade will not result in an extension of the life of the vehicle, but will allow the truck to tow heavier trailers. E. Each year $10,000 was spent for routine maintenance such as oil changes, filters, lubrication. For simplicity purposes, assume that these transactions all took place on December 30th of each year. F. January 1, 2022: The truck was sold for scrap for $20,000 Required: A. Which of the costs incurred on January 1 2018 should be posted to the asset account called "Truck" account, and which costs should be expensed. B. What is the depreciation expense for each year. C. What is the net-book-value of the truck at the end of each year (2018, 2019, 2020 and 2021). X D. Show the joumal entry for the disposal of the truck.
Expert Answer:
Answer rating: 100% (QA)
Answer A Costs incurred on January 1 2018 850000 to a... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0176509736
10th Canadian Edition, Volume 1
Authors: Donald Kieso, Jerry Weygandt, Terry Warfield, Nicola Young,
Posted Date:
Students also viewed these accounting questions
-
An entity with a December 31 year end purchased $2,000 of inventory on account. The seller was responsible for delivery to the shipping point, with freight of $50 paid at destination by the buyer....
-
A wholesale business with a December 31 year end purchased new equipment on November 25, 20X0, for $10,000. Before 20X0, the business owned no other equipment. Required: 1. What are the tax...
-
Bisor Company has a December 31 year end and uses straight-line depreciation for all property, plant, and equipment. On July 1, 2010, the company purchased equipment for $500,000. The equipment had...
-
12. For a piece of material, the steady state flow of material across its thickness is 0.250 x 10 kg/m-hr. If the concentrationon the high side of the material is 1.85 kg/m and is 0.06 kg/m on the...
-
Patrick's Pressure Wash pays $4,000 per month to lease equipment that it uses for washing sidewalks, swimming pool decks, houses, and other things. Based on the size of a work crew, the cost of the...
-
Compute the 2 0 2 3 standard deduction for the following taxpayers.a . Ellie is 1 5 and claimed as a dependent by her parents. She has $ 8 7 5 in dividends income and $ 1 , 5 2 0 in wages from a part...
-
Verify that both the pressure and the vorticity field satisfy the Laplace equation for Stokes flow. Verify that the velocity field satisfies the biharmonic equation \[\begin{equation*}abla^{4}...
-
Mike Lyons incorporated Lyons Concrete, Inc., in Montana, but did not file its first annual report, so the state involuntarily dissolved the firm in 1996. Unaware of the dissolution, Lyons continued...
-
During 2021, Smooth Ride Airlines paid salary expense of $38.3 million. At December 31, 2021, Smooth Ride accrued salary expense of $2.2 million. Smooth Ride then paid $2.9 million to its employees...
-
Aduke Zhawaki is a talented musician who runs a business teaching music and playing in gigs with a variety of other musicians. Her business is operated as a proprietorship, under the name A to Z...
-
John works in the accounting department of a local footwear manufacturer that specializes in clogs and boots. Clogs and boots typically sell for $103 and $209 per pair, respectively. Based on past...
-
Do you constantly check your Snap Chat? Instagram? You are not alone if you do. The Pew Research Center reports that 95% of young people have a smartphone, and 45% say they are online almost...
-
The Great Recession of 2008 hit Starbucks hard. Company founder Howard Schultz was at the helm during this challenging time for the company. More than 600 Starbucks stores closed and about 12,000...
-
A bullet shot from a rifle travels at 1000 m/s. What is the elapsed time between when the bullet strikes a target 500 m away, and when the sound of the gunshot reaches the target?
-
Using a financial calculator or spreadsheet, calculate the following: a. The future value of a $223 deposit left in an account paying 7% annual interest for eight years. b. The future value at the...
-
At the turn of the 20th century, an Indiana physician named George Eddingfield repeatedly refused to come to the aid of Charlotte Burk, who was in labor, even though he was Mrs. Burks family...
-
Below is an investment opporutnity, with investment amount of $ 1,229, to be invested for 8 years ,at an annual rate of 8.00% What is the future value of this investment? (Round your answers to two...
-
Why is inventory management important for merchandising and manufacturing firms and what are the main tradeoffs for firms in managing their inventory?
-
Information related to Banzai Books Ltd. is as follows: balance per books at October 31, $41,847.85; November receipts, $173,528.91; November disbursements, $166,193.54; balance per bank statement at...
-
Access the financial statements of Magna International Inc. for the company's year ended December 31, 2011. These are available at Vlww.sedar.com or the company's website. Review the information that...
-
The trial balance before adjustment for Sinatra Company shows the following balances. The following cases are independent: 1. To obtain cash, Sinatra factors without recourse $20,000 of receivables...
-
Due to the Covid recession of 2020, the U.S. government budget changed from smaller deficits to very large deficits. What impact would this have on the net exports and private sector balances, all...
-
Verify the likelihood in equation (16.5) for the two-part model. n2. (16.5) -(-)-(-2)/02 L = [] {(p;)" (1 p; )'-'} [[ ( i=1 ri=1
-
Two Population Poissons. We can express the two population problem in a regression context using one explanatory variable. Specifically, suppose that \(x_{i}\) only takes on the values of zero and...
Study smarter with the SolutionInn App