*Exercise 9-7 Linton Company purchased a delivery truck for $32,000 on January 1
ID: 2511901 • Letter: #
Question
*Exercise 9-7 Linton Company purchased a delivery truck for $32,000 on January 1, 2017. The truck has an expected salvage value of $2,700, and is expected to be driven 106,000 miles over its estimated useful life of 10 years. Actual miles driven were 16,400 in 2017 and 13,900 in 2018. Calculate depreciation expense per mile under units-of-activity method. (Round answer to 2 decimal places, e.g. 0.52.) per mile Depreciation expense s Compute depreciation expense for 2017 and 2018 using (1) the straight-line method, (2) the units-of-activity method, and (3) the double-declining-balance method. (Round depreciation cost per unit to 2 decimal places, e.g. 0.50 and depreciation rate to O decimal places, e.g. 15%. Round final answers to O decimal places, e.g. 2,125.) Depreciation Expense 2017 2018 (1) Straight-line method (2) Units-of-activity method (a) Dauble decining-balance method sD Assume that Linton uses the straight-line method. Prepare the journal entry to record 2017 depreciation. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places, e.g. 2,125.) Account Titles and Explanation Debit Credit Assume that Linton uses the straight-line method. Show how the truck would be reported in the December 31, 2017, balance shet(Round answers to O decimal places, e.g. 2,125.) LINTON COMPANY Partial Balance SheetExplanation / Answer
a) Depreciation expense per mile = (32000-2700/106000) = 0.28 per mile
b) Calculate depreciation expense :
c) Journal entry :
Balance sheet presentation :
2017 2018 Straight line 2930 2930 Units of activity method 4592 3892 Double decline balance method 6400 5120Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.