Reference no: EM13763623
Capitalized asset cost and first year depreciation, and identifying depreciation results that meet management objectives
On January 9, 2010, Swifty Delivery Service purchased a truck at a cost of $67,000. Before placing the truck in service, Swifty spends $2,200 painting it, $500 replacing tires, and $5,000 overhauling the engine. The truck should remain in service for 6 years and have a residual value of $14,700. The truck's annual mileage is expected to be 15,000 miles in each of the years and 10,000 miles in each of the next 2 years - 80,000 miles in total. In deciding which depreciation method to use, Jerry Speers, the general manager, requests a depreciation schedule for each of the depreciation methods (straight-line, units of production, and double declining balance).
Requirements:
1. Prepare a depreciation schedule for each depreciation method, showing asset cost, depreciation expense, accumulated depreciation, and asset book value.
2. Swifty prepares financial statements using the depreciation method that reports the highest net income in the early years of asset use. For income-tax purposes, the company uses the depreciation method that minimizes income taxes in the early years of asset use. For income tax purposes, the company uses the depreciation method that minimizes income taxes in the early years. Consider the first year that Swifty uses the truck. Identify the depreciation methods that meet the general manager's objectives, assuming the income tax authority permits the use of any of the methods.
|
Strategic management accounting
: There are the relationships in the area of "strategic financial management" & "strategic management accounting"
|
|
Analyze the country as a potential location
: Analyze the country as a potential location using the simplified market-penetration grid. Use the weights provided, but support your rankings(0-4) with your research.
|
|
Identify the companys domestic environment
: Identify the company's domestic environment and discuss how the government regulations affect its domestic environment it must operate in.
|
|
Design an application of three type of arrays
: Design an application that includes three arrays of type int.Allow the user to enter values into the first two.Write a method to store the product of the two arrays in the third array. Produce a display that shows the contents of all three arrays ..
|
|
Capitalized asset cost and first year depreciation
: On January 9, 2010, Swifty Delivery Service purchased a truck at a cost of $67,000. Before placing the truck in service, Swifty spends $2,200 painting it, $500 replacing tires, and $5,000 overhauling the engine. The truck should remain in service ..
|
|
Explain effect of stress and culture on policing
: Explain Effect of Stress and Culture on Policing
|
|
Calculate the cost of equity capital to this firm
: Management and outside analysts expect the growth rate of earnings and dividends for the company to be 7.5 percent per year. Calculate the cost of equity capital to this firm.
|
|
Does serena have any defense
: Serena received a check drawn on the Trust Company of Florida. She endorsed the check and received payment from another bank which sent the check for collection to the Trust Company of Florida and received payment. Does Serena have any defense
|
|
What is this characters off-line personality
: What is this character's off-line personality? In what ways does this character use social media? How would you describe this character's online behavior or personality?
|