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ID: 2514096 • Letter: O
Question
oooo T-Mobile Wi-Fi 1:21 PM @?80%. D KACC 3010 proj 3 Winter 2018.xls Project Information pctb Asset aquisitions planned dep'n PLANNED Reminder that the Asset Cost Useful life Salvage Depreciation Purchase Date Value 0,500 Straight line 1-Apr-1 Equipment Delivery Equipment Additional information related to the $200,000 delivery equipment purchase: It is ESTIMATED that the equipment will be ABLE TO DRIVE 150,000 total miles over its Iidetime. To complete the depreciation schedule, PRESUME that the actual miles driven for its useful life are as indicated below. Also, round depreciation expense per unit to the nearest cent and depreciation expense to the nearest dollar Year 1 Year 2 Year 3 ear 4 Year 5 Year 6 12,560 32,560 31,650 29,850 26,500 22.350 155,470 Previous Next 2 Dashboard Calendar To Do Notifications InboxExplanation / Answer
1. As per the accounting rules, Land is a non-depreciable asset. It will not be depreciated.
2. Remember that Under Straight line method of depreciation, depreciation is computed by dividing the Purchase value deducted by Salvage value and Dividing the difference by Useful life of asset.
For the delivery Equipment, depreciation will be calculated based on nouber of miles driven by the equipment. Please note the equipment is purchased on 1-May-19 and will complete 12,560 miles in year 1 (12 months). Assuming miles are equal for every month, number of miles driven till 31 October 2019 would be 12,560/12*6= 6,280 miles.
Delivery equipment = Book value - Salvage value= 200000-20000= 180000
Total estimated miles to be driven-= 150000
No of miles driven till 31-Oct-19= 6280
Depreciation for delviery equipment= 180000/150000*6280= 15072.
Total depreciation for 31-Oct-19= 15000+20417+15072= 50489
Asset Cost Salvage value Cost-Salvage value Useful Life Depreciation per year Purchase date No. of months use in year Depreciation for 2018-19 Building 465,500 15,500 450,000 30 15,000 01-Nov-2018 12 15,000 Office Equipment 150,500 10,500 140,000 4 35,000 01-Apr-2019 7 20,417Related Questions
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