Depreciation for Partial PeriodsMalone Delivery Company purchased a new delivery truck for $45,000 on April 1, 2019. The truck is expected to have a service life of 10 years or 180,000 miles and a residualvalue of $3,000. The truck was driven 8,000 miles in 2019 and 14,000 miles in 2020. Malone computes depreciation expense to the nearest whole month.Required:1. Compute depreciation expense for 2019 and 2020 using the following methods: (Round your answers to the nearest dollar.)a. Straight-line method201920202019b. Sum-of-the-years'-digits2019186 X2020 $c. Double-declining-balance method.$tA2020d. Activity method2019$2019326 X2020method3,782 X6,846 X9,000 X$ 7,200 X2020$3,500 X2. For each method, what is the book value of the machine at the end of 2019? At the end of 2020? (Round your answers to the nearest dollar.)a. Straight-line method44,814 X$ 44,488 Xb. Sum-of-the-years'-digits method2,000 X b. Sum-of-the-years'-digits20192020$ 34,372 Xc. Double-declining-balance2019 $ 36,000 X2020d. Activity method2019method202041,218 Xmethod$ 28,800 X$ 43,080 X39,720 X

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Description: Depreciation for Partial PeriodsMalone Delivery Company purchased a new delivery truck for $45,000 on April 1, 2019. The truck is expected to have a service life of 10 years or 180,000 miles and a residualvalue of $3,000. The truck was driven 8,000

Depreciation is a non-cash expense which is used to show a decline in an assets' value due to its…

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Depreciation for Partial Periods Malone Delivery Company purchased a new delivery truck for $45,000 on April 1, 2019. The truck is expected to have a service life of 10 years or 180,000 miles and a residual value of $3,000. The truck was driven 8,000 miles in 2019 and 14,000 miles in 2020. Malone computes depreciation expense to the nearest whole month. Required: 1. Compute depreciation expense for 2019 and 2020 using the following methods: (Round your answers to the nearest dollar.) a. Straight-line method 2019 2020 $ b. Sum-of-the-years'-digits 2020 2019 $ 2019 $ 3,782 X $ 6,846 X c. Double-declining-balance method $ 9,000 X 186 X d. Activity method 2019 $ 2020 326 X 2020 $ 7,200 X 2019 method 2020 2,000 X $ 3,500 X 2. For each method, what is the book value of the machine at the end of 2019? At the end of 2020? (Round your answers to the nearest dollar.) a. Straight-line method $ 44,814 X $ 44,488 X b. Sum-of-the-years'-digits method

Depreciation for Partial Periods Malone Delivery Company purchased a new delivery truck for $45,000 on April 1, 2019. The truck is expected to have a service life of 10 years or 180,000 miles and a residual value of $3,000. The truck was driven 8,000 miles in 2019 and 14,000 miles in 2020. Malone computes depreciation expense to the nearest whole month. Required: 1. Compute depreciation expense for 2019 and 2020 using the following methods: (Round your answers to the nearest dollar.) a. Straight-line method 2019 2020 $ b. Sum-of-the-years'-digits 2020 2019 $ 2019 $ 3,782 X $ 6,846 X c. Double-declining-balance method $ 9,000 X 186 X d. Activity method 2019 $ 2020 326 X 2020 $ 7,200 X 2019 method 2020 2,000 X $ 3,500 X 2. For each method, what is the book value of the machine at the end of 2019? At the end of 2020? (Round your answers to the nearest dollar.) a. Straight-line method $ 44,814 X $ 44,488 X b. Sum-of-the-years'-digits method

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter11: Depreciation, Depletion, Impairment, And Disposal

Section: Chapter Questions

Problem 2E: Depreciation Methods Sorter Company purchased equipment for 200,000 on January 2, 2019. The...

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