ead, Study & Practice Gradebook ORION Downloadable eTextboolk t Open Assignment
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ead, Study & Practice Gradebook ORION Downloadable eTextboolk t Open Assignment NT RESOURCES CALCULATOR 09-HW-NOVA ercise 9-4 9-4 n 136 Brief Exercise 9-2 3 Your answer is incorrect. Try again. Cullumber Company incurs these expenditures in purchasing a truck: cash price $2,970, acident insurance (during use) $1,640, sales taxes $1,720, motor vehide license $340, and painting and lettering $2,620. What is the cost of the truck? The cost of the truck Click if you would like to Show Work for this question: Qpen Show Words Choice 137 cise 9-8 Question 34 ore LINK TO TEXT SAVE FOR LATER Question Attempts: 4 of 6 used Printer Normal Online 8.1.3 PAPER LOw Register Till Transaction Business Date Ope KEITH JONES 002 03 8652 12/02/17Explanation / Answer
Answer to Exercise 9-2
Cost of Truck = Cash Price + Sales Taxes + Painting and Lettering
Cost of Truck = $22,970 + $1,720 + $2,620
Cost of Truck = $27,310
All these expenses will be capitalized and Insurance Expense and Vehicle License are Revenue Expenses.
Answer to Exercise 9-4
Straight Line Depreciation Expense per year = (Cost – Salvage Value) / Useful Life
Straight Line Depreciation Expense per year = (30,600 – 5,000) / 5
Straight Line Depreciation Expense per year = 25,600 / 5
Straight Line Depreciation Expense per year = $5,120
Annual Depreciation under Straight Line Method in First Year = $5,120
Annual Depreciation under Straight Line Method in Second Year = $5,120
Answer to Exercise 9-14
Depreciable Cost = Cost - Salvage Value
Depreciable Cost = $20,900 - $400
Depreciable Cost = $20,500
Depreciation Expense for the Year 2016 = 20,500 / 155,000 * 30,000
Depreciation Expense for the Year 2016 =$3,967.74
Depreciation Expense for the Year 2017 = 20,500 / 155,000 * 31,600
Depreciation Expense for the Year 2017 =$4,179.35
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