Compute depreciation under units-of-activity method. structions a. Compute the depreciable cost per unit. b. Prepare a depreciation schedule assuming actual mileage was 2020, 27,000
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- Monty Bus Lines uses the units-of-activity method in depreciating its buses. One bus was purchased on January 1, 2022, at a cost of $233,839. Over its 5-year useful life, the bus is expected to be driven 139,900 miles. Salvage value is expected to be $8,600. (a) Compute the depreciable cost per unit. (Round answer to 2 decimal places, eg 0.50.) Depreciation cost per unit per mile eTextbook and Media Save for Later (b) Prepare a depreciation schedule assuming actual mileage was: 2022, 34,900: 2023, 28,000; 2024, 40,000; and 2025, 37,000. (Round cost per unit to 2 decimal places, eg 15.25 and all other answers to O decimal places, eg. 5,275.) Computation Annual Depreciation Expense Units of Depreciation Accumulated Year Activity Cost /Unit Depreciation 2022 2023 2024 2025Yello Bus Lines uses the units-of-activity method in depreciating its buses. One bus was purchased on January 1, 2020, at a cost of $299,818. Over its 4-year useful life, the bus is expected to be driven 190,600 miles. Salvage value is expected to be $8,200. (a) X Your answer is incorrect. Compute the depreciable cost per unit. (Round answer to 2 decimal places, e.g. 0.50.) Depreciation cost per unit LA $ 1.40 per mileOn January 1, 2019, the Philippine Rabbit Bus Co. purchased 20 buses at a total cost of P100,000,000. The buses have an average useful life of 5 year and the group method of depreciation is applied. The buses are retired as follows:No. of Bus Salvage ProceedsDec. 31, 2022 5 P 5,000,000Dec. 31, 2023 15 12,000,00010. How much is the depreciation for 2019?11. Give the entry to record retirement of 5 buses on Dec. 31, 2022.12. How much is the depreciation for 2023?13. Give the entry to record retirement of 15 buses on Dec. 31, 2023.
- Compute straight-line depreciation. 4 BE9.4 (LO 2), AP Gordon Chemicals Company acquires a delivery truck at a cost of $31,000 on January 1, 2022. The truck is expected to have a salvage value of $4,000 at the end of its 4-year useful life. Compute annual depreciation for the first and second years using the straight-line method. Compute depreciation and evaluate treatment. REO FOTO) ANI CWardell Company purchased a minicomputer on January 1, 2022, at a cost of $48.000 The computer was depreciated using the straight-line method over an estimated five-year life with an estimated residual value of $3,000. On January 1, 2024, the estimate of useful life was changed to a total of 10 years, and the estimate of residual value was changed to $1,200 Exercise 11-23 (Algo) Part 2 2. Prepare the year-end journal entry for depreciation on December 31, 2024. Assume that the company uses the double-decline balance method instead of the straight-line method. Note: If no entry is required for a transaction/event, select "No journal entry required in the first account field. Do not round intermediate calculations. Round your final answers to nearest whole dollar. View transaction list Journal entry worksheet 1 Record depreciation expense for 2024,Wardell Company purchased a minicomputer on January 1, 2022, at a cost of $48,000 The computer was depreciated using the straight-line method over an estimated five-year life with an estimated residual value of $3,000. On January 1. 2024, the estimate of useful life was changed to a total of 10 years, and the estimate of residual value was changed to $1,200 Exercise 11-23 (Algo) Part 1 Required: 1. Prepare the year-end journal entry for depreciation on December 31, 2024 No depreciation was recorded during the year Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your final answers to nearest whole dollar. No 1 Event 1 Answer is complete and correct. General Journal Depreciation expense Accumulated depreciation-computer Debit 3,600Ⓒ Credit 1600
- Sunland Arrow Ltd. purchased a new bus on October 1, 2024, at a total cost of $185,590. Management is considering the merits of using the diminishing-balance or units-of-production methods of depreciation instead of the straight-line method, which it currently uses for its other buses. The new bus has an estimated residual value of $18,500, and an estimated useful life of either four years or 303,800 km. Use of the bus will be sporadic so it could be much higher in some years than in others. Assume the new bus is driven as follows: 8,200 km in 2024; 99,000 km in 2025; 64,300 km in 2026; 97,000 km in 2027; and 35,300 km in 2028. Sunland Arrow has a October 31 year end. (a) Prepare separate depreciation schedules for the life of the bus using: (Round depreciation per unit to 2 decimal places, e.g. 5.28 and final answers to O decimal places, e.g. 5,275.) (1) Straight-line method: Year 2024 $ 2025 2026 2027 2028 Depreciable Amount tA Depreciation Expense $ Accumulated Depreciation LA…Cheyenne Corp. purchased a delivery truck for $42,000 on January 1, 2022. The truck has an expected salvage value of $9,000, and is expected to be driven 100,000 miles over its estimated useful life of 8 years. Actual miles driven were 15,600 in 2022 and 10,000 in 2023. Calculate depreciable cost per mile under units-of-activity method.Windsor Bus Lines uses the units-of-activity method in depreciating its buses. One bus was purchased on January 1, 2017, at a cost of R$245,210. Over its 7-year useful life, the bus is expected to be driven 170,600 miles. Residual value is expected to be R$14,900. "(a) Your answer is correct. Compute the depreciable cost per unit. (Round answer t to 2 decimal places, e.g. 9.50.) Depreciation cost per unit Rsl.35 per mile Attempts: 1 of 2 used Maria 1181 (b) Prepare a depreciation schedule assuming actual mileage was 2017, 42,900; 2018, 49,500; 2019, 42,300; and 2020, 35,900. (Round answers to 0 decimal places, e.g. 2,125 except Depreciation Cost /Unit.) reen Sh 12 22 End of Year Computation Annual Book Depreciation Expense Accumulated Depreciation Cost /Unit Units of Activity Value Depreciation Year R$ RS R$ 2017 R$ nen Shor 12 22.26 2018 2019 2020
- E9.6 (LO 2), AP Rottino Company purchased a new machine on October 1, 2022, at a cost of $150,000. The company estimated that the machine will have a salvage value of $12,000. The machine is expected to be used for 10,000 working hours during its 5-year life. Instructions Compute the depreciation expense under the following methods for the year indicated. a. Straight-line for 2022, b. Units-of-activity for 2022, assuming machine usage was 1,700 hours. c. Declining-balance using double the straight-line rate for 2022 and 2023. a. Straight-line method Cost Less: Salvage value Depreciable cost Useful life (years) Annual depreciation 2022 Depreciation: Annual Depreciation Months machine in use 2022 partial year depreciation b. Units-of-activity method Cost Less: Salvage value Depreciable cost Useful life (hours) Depreciable cost/hour 2022 Depreciation: Depreciable cost/hour Hours machine used 2022 depreciation expense c. Declining-balance method: Straight-line rate Double the straight-line…E9.6 (LO 2) Xanadu A/S purchased a new machine on October 1, 2020, at a cost of €96,000. The company estimated that the machine will have a residual value of €12,000. The machine is expected to be used for 10,000 working hours during its 5-year life. Determine depreciation for partial periods. Instructions Compute the depreciation expense under the following methods for the year indicated. a. Straight-line for 2020. b. Units-of-activity for 2020, assuming machine usage was 1,700 hours. c. Declining-balance using double the straight-line rate for 2020 and 2021.Problem 27-10. (AICPA Adapted) On January 1, 2020, Domino Company purchased a new machine for P4,000,000. The new machine has an estimated useful life of eight years and the residual value was estimated to be P400,000. Depreciation was computed on the sum of the years' digits method. What is the carrying amount of the machine on December 31, 2021? a. 2,100,000 b. 2,500,000 c. 1,150,000 000 d 000 091 d. 3,300,000 000 061 Problem 27-11 (AICPA Adapted) 27 1903 Marta On January 1, 2018, Mogul Company acquired equipment to be used in the manufacturing operations. The equipment has an estimated useful life of 10 years and an estimated residual value of P50,000. 000 112 d The depreciation applicable to this equipment was P240,000 for 2020 computed under the sum of years' digits method. What was the acquisition cost of the equipment? a. 1,650,000 gasind b. 1,700,000 c. 2,400,000 d. 2,450,000 Problem 27-12 (AICPA Adapted) On April 1, 2020, Kingdom Company purchased new machinery for P3,000,000.…