Treadwell Co. uses the units of activity method for depreciation of its delivery vehicle. It paid...
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Treadwell Co. uses the units of activity method for depreciation of its delivery vehicle. It paid $60,000 for the vehicle and expects to use it for 5 years before trading it in on a new one. The car dealer has agreed to buy it back for $5,095 if it has less than $200,190 km wich is within Treadwell's expectation of km per year on the vehicle. In year 1 the truck logged 38,000 km on the odometer. In year 2 the actual mileage was 28,000 km. In year 3 the actual mileage was 55,000 km. In year 4 the actual mileage was 33,000 km and in year 5 the actual mileage is reaching 20,000 km and there are less than 90 days until the end of the year. Round your answer to the nearest dollar (no cents). Required 1: What depreciation expense will Treadwell Co record in year 2? $ Required 2: What depreciation expense will Treadwell Co record in year 3? $ Required 3: What depreciation expense will Treadwell Co record in year 4? $ Required 4: What accumulated depreciation will Treadwell Co report at the end of year 2? $ Required 5: What accumulated depreciation will Treadwell Co report at the end of year 3? $ Required 6: What accumulated depreciation will Treadwell Co report at the end of year 4? $ Treadwell Co. uses the units of activity method for depreciation of its delivery vehicle. It paid $60,000 for the vehicle and expects to use it for 5 years before trading it in on a new one. The car dealer has agreed to buy it back for $5,095 if it has less than $200,190 km wich is within Treadwell's expectation of km per year on the vehicle. In year 1 the truck logged 38,000 km on the odometer. In year 2 the actual mileage was 28,000 km. In year 3 the actual mileage was 55,000 km. In year 4 the actual mileage was 33,000 km and in year 5 the actual mileage is reaching 20,000 km and there are less than 90 days until the end of the year. Round your answer to the nearest dollar (no cents). Required 1: What depreciation expense will Treadwell Co record in year 2? $ Required 2: What depreciation expense will Treadwell Co record in year 3? $ Required 3: What depreciation expense will Treadwell Co record in year 4? $ Required 4: What accumulated depreciation will Treadwell Co report at the end of year 2? $ Required 5: What accumulated depreciation will Treadwell Co report at the end of year 3? $ Required 6: What accumulated depreciation will Treadwell Co report at the end of year 4? $
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Treadwell Co Delivery Vehicle Depreciation Units of Activity Method Given Information Vehicle cost 6... 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:
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