Hi, I need help with Income statement. What should be in my income statement as

Question

Hi, I need help with Income statement.

What should be in my income statement as Vehicle expenses for 2014, 2015 and 2016?

Vehicles Original Cost $40,000.00 Salvage Value 2500 Useful Life 5 Depreciation $7,500.00 Book Value Depreciation Accumulated Book Value Period Start Expenses Depreciation End 1 $40,000.00 $7,500.00 $7,500.00 $32,500.00 2 $32,500.00 $7,500.00 $15,000.00 $25,000.00 3 $25,000.00 $7,500.00 $22,500.00 $17,500.00 4 $17,500.00 $7,500.00 $30,000.00 $10,000.00 5 $10,000.00 $7,500.00 $37,500.00 $2,500.00

Explanation / Answer

Answer:

Calculation of Depriciation is Correct

=Cost -Salvage Value /Life of the assets

=40000-2500 / 5 year

=37500 / 5 year

=7500 each year

Depreciation is the amount that are deducted over time to decline in the business vehicle’s value due to wear and tear

We assume that vehicle was purchased in the year 2014 so Vehicle expenses for 2014, 2015 and 2016 as follow

Year

Expanses

2014

7500

2015

7500

2016

7500

Year

Expanses

2014

7500

2015

7500

2016

7500

Related Questions

Navigate

• Browse (All)
• Browse H
• Subjects

---

---

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