$900,000 the assessed value as a guide, allocate the total purchase price of the

Question

$900,000 the assessed value as a guide, allocate the total purchase price of the plant to the land, building. Using and machinery accounts in Tamock Company's records. Depreciation Methods A delivery truck costing $20,000 is expected to have a $2,000 salvage value at he end of its useful life of four years or 100,000 miles. Assume that the truck was purchased on E-3A g.3A. ciation that the truck was driven 30,000 miles in the second year.) 2. Calculate the depreciation expense for the second year using each of the following depre- methods: (a) straight-line, (b) double-declining balance, and (c) units-of-production. (Assume

Explanation / Answer

Calculate second year dep :

a) Straight line depreciation = (20000-2000/4) = 4500

Second year dep = 4500

b) Double decline dep :

Straight line dep rate = 100/4 = 25%

Double decline rate = 25*2 = 50%

Second year dep = 20000*50%*50% = 5000

c) Units of production :

Second year dep = (20000-2000/100000)*30000 = 5400

Related Questions

Navigate

• Browse (All)
• Browse #
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.