Tasty Subs acquired a delivery truck on October 1, 2021, for $24,000. The company estimates a...

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Tasty Subs acquired a delivery truck on October 1, 2021, for $24,000. The company estimates a residual value of $3,000 and a six-year service life. It expects to drive the truck 140,000 miles. Actual mileage was 5,500 miles in 2021 and 20,000 miles in 2022. Required: Calculate depreciation expense using the activity-based method for 2021 and 2022, assuming a December 31 year-end. (Do not round your intermediate calculations.) Depreciation expense 2021 2022 The Italian Pizza Company purchased land as a factory site for $78,000. Prior to construction of the new building, the land had to be cleared of trees and brush. Construction costs incurred during the first year are listed below: Land clearing costs Sale of firewood to a worker Architect fees (for new building) Title investigation of land Property taxes on land (for the first year) Building construction costs Totals Land $ Required: Determine the amounts that the company should record in the land and the new building accounts. (Amounts to be deducted should be indicated by a minus sign.) Building 3,800 (520) 18,000 2,300 1,800 280,000 Tasty Subs acquired a delivery truck on October 1, 2021, for $24,000. The company estimates a residual value of $3,000 and a six-year service life. It expects to drive the truck 140,000 miles. Actual mileage was 5,500 miles in 2021 and 20,000 miles in 2022. Required: Calculate depreciation expense using the activity-based method for 2021 and 2022, assuming a December 31 year-end. (Do not round your intermediate calculations.) Depreciation expense 2021 2022 The Italian Pizza Company purchased land as a factory site for $78,000. Prior to construction of the new building, the land had to be cleared of trees and brush. Construction costs incurred during the first year are listed below: Land clearing costs Sale of firewood to a worker Architect fees (for new building) Title investigation of land Property taxes on land (for the first year) Building construction costs Totals Land $ Required: Determine the amounts that the company should record in the land and the new building accounts. (Amounts to be deducted should be indicated by a minus sign.) Building 3,800 (520) 18,000 2,300 1,800 280,000

Answer rating: 100% (QA)

Requirement 1 Tasty Subs Depreciation rate per mile Cost Salvage value To... View the full answer