Balance depreciation exceed straight-line depreciation

Assignment Help Financial Management

Reference no: EM132007509

1. Wexford Co. purchased a new delivery truck at the beginning of 2017. The truck has a cost of $37,000, an estimated life of five years, and an estimated residual value of $7,000. A full year's depreciation expense is to be recorded in 2017. The truck was driven 20,000 miles during 2017 and 24,000 miles during 2018. The number of expected miles over five years is 100,000. Refer to the information for Wexford Co. By what amount would double-declining-balance depreciation exceed straight-line depreciation over the five-year life of the truck?

2. Royal Company purchased a dump truck at the beginning of 2015 at a cost of $60,000. The truck had an estimated life of six years and an estimated residual value of $24,000. On January 1, 2016, the company made major repairs of $20,000 to the truck that extended the life one year. Thus, starting with 2017, the truck has a remaining life of five years and a new salvage value of $8,000. Royal uses the straight-line depreciation method. What is the book value of the truck to be reported on the balance sheet at December 31, 2017?

Reference no: EM132007509

Questions Cloud

How much will you have to save each year : How much will you have to save each year over the next 40 years to meet your goal?

Assume that there are no terminal year cash flows : Ignore taxes and assume that there are no terminal year cash flows.

Determine the salary range and education requirements : Determine the salary range, education requirements, required skills and characteristics, certification and licensure opportunities (if applicable).

Effective annual compound interest-rate of return : What is your effective annual compound interest-rate of return over the course of the 10 years?

Balance depreciation exceed straight-line depreciation : By what amount would double-declining-balance depreciation exceed straight-line depreciation over the five-year life of the truck?

What is south american airlines cost of equity : The company pays a combined income tax rate of 35%. The GST rate is 13%. What is SAA’s cost of equity?

Identify one current public health prevention initiative : Identify one current public health prevention initiative. Discuss the goals of the initiative and provide evidence of its success or failure in addressing.

Considering project called container : kramerica industries is considering a project called container 2 that has an up front cost of $300,000. t

Construct framework to assist you in program planning effort : In continuing with the development of your concept paper, you will now construct a framework to assist you in your program planning efforts.

User Account

All Pages