Kk company bought a delivery truck for 62000 on january

Assignment Help Accounting Basics

Reference no: EM13614867

KK Company bought a delivery truck for $62,000 on January 1,2009. They installed a rear hydraulic lift for $8,000 and paidsales tax of $3,000. In addition, KK paid $2,400 for aone-year insurance policy and $500 for registration fees. Theyestimate the useful life of the truck to be 10 years and itsresidual value to be $8,000.

a) If KK uses the straight-line method of depreciation, what isthe depreciation expense and book value at the end of2010?

b) If KK uses the double declining-balance method, how much isdepreciation expense in 2010?

c) If KK uses the units-of-production method when theyhave estimated the truck will be driven 500,000 miles over itslife, what is depreciation expense in 2010 when the truck isdriven 60,000 miles?

d) What amount would be capitalized as the acquisition cost of the truck on KK's books?

e) What amounts connected to the truck's acquisition should be expensed during 2009 other than depreciation for the year?

Reference no: EM13614867

Questions Cloud

The records of two representative patients were analyzed : nbspmercy hospital plans to use activity-based costing to assignhospital indirect costs to the care of patients. the

You are an engineer for bulbs lsquor us and youve developed : you are an engineer for bulbs lsquor us and youve developed a lightbulb that you claim consumes less than 5 watts per

An alcohol solution contains 6 ethanol by mass this : an alcohol solution contains 6 ethanol by mass. this solution is fed to a distillation process which results in a

A cosmic ray proton is moving at such a speed that it can : a cosmic ray proton is moving at such a speed that it can travel from the moon to earth in 1.70 s. assume earth-moon

Kk company bought a delivery truck for 62000 on january : kk company bought a delivery truck for 62000 on january 12009. they installed a rear hydraulic lift for 8000 and

You need to test the alternative hypothesis that an average : you need to test the alternative hypothesis that an average is greater than 70. if the population average is 70 and

The conducting path between the right hand and the left : the conducting path between the right hand and the left hand can be modeled as a 12 cm-diameter 180cm-long cylinder.

State the appropiate null and alternative hypothesis verify : do students who learned english as well as another language simultaneously score worse on the sat critical reading exam

The cash account and the december bank statement of : a. linetech companys bank statement showed an endingbalance of 8000. items appearing in the bank reconciliationincluded

User Account

All Pages