P9-31A (similar to) On January 2, 2018, Swilty Delivery Service purchased a truc

Question

P9-31A (similar to) On January 2, 2018, Swilty Delivery Service purchased a truck at a oost of $90,000. Before placing the truck i Question Heip n service for five years and have a residual value of $9,000. The truck's annual mileage is expected to be 21,000 miles in each in service, Swifty spent $3,000 painting t, $2,500 replacing Sires, and $3,500 ovarhauling the engine. The of the first four years and 16,000 miles in the fith year- 100,000 miles in total. In dediding which depreciation method to use, Steven Kittridge, the general manager, requests a depreciation schedule use, for each of the depreciation methods aightliewibdproduton. Read the requirements depreciation Requirement 1. Prepare a depreciation schedule for each Begin by preparing a depreciation schedule using the straight-line method. method, showing asset oost, depreciation expense, accumulated depreciation, and asset book value. Depreciation for the Year Assot Depreciable Depreciation Deprciation Accumulated Book Cost Date Cost Rate Expense Depreciation Value 1-2-2018 12-31-2018 12-31-2019 12-31-2020 12-31-2021 12-31-2022 oose from any list or enter any number in the input felds and then click Check Answer Clear All Check Answer MacBook Pro

Explanation / Answer

Cost of Truck = $90000 + $3,000 +$2,500+$3,500 = $99,000. Straight line Depreciation Shedule Depreciation for the year Date Asset cost Dep. Cost Dep. Rate Dep. Exp. Accu. Dep. Book value 1/2/2018 99000 99000 12/31/2018 90000 1/5x12/12 18000 18000 12/31/2019 90000 1/5x12/12 18000 36000 12/31/2020 90000 1/5x12/12 18000 54000 12/31/2021 90000 1/5x12/12 18000 72000 12/31/2022 90000 1/5x12/12 18000 90000 9000 Resedual value Depreciable Cost: $99,000 - $9,000 = $90,000. Unit-of-Production Depreciation Shedule Depreciation for the year Date Asset cost Dep. Per unit Num. of unit Dep. Exp. Accu. Dep Book value 1/2/2018 99000 99000 12/31/2018 (90,000*21,000)/100,000 21000 18900 18900 75600 12/31/2019 (90,000*21,000)/100,000 21000 18900 37800 56700 12/31/2020 (90,000*21,000)/100,000 21000 18900 56700 37800 12/31/2021 (90,000*21,000)/100,000 21000 18900 75600 18900 12/31/2022 (90,000*16,000)/100,000 16000 14400 90000 9000 Double Decline Balance Depreciation Shedule Depreciation for the year Date Asset Cost Depreciable cost Dep. Rate % Dep. Expense Accu. Dep. Book value 1/2/2018 99000 99000 12/31/2018 99000 40 39600 39600 59400 12/31/2019 59400 40 23760 63360 35640 12/31/2020 35640 40 14256 77616 21384 12/31/2021 21384 40 8554 86170 12830 12/31/2022 12830 29.85 3830 90000 9000

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