Om itthesigninyourresponse totalamountofdeprec iation

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Unformatted text preview: rrent y ear, c ompute the total amount of deprec iation ex pens e that Airport Auto Rentals s hould rec ogniz e on this fleet of c ars for the y ear. (Om it the "$" sign in your response.) Total amount of deprec iation $ 318,600 Learning Objective: 09­04 Account for depreciation using methods other than straight­line or declining­balance. Worksheet During the c urrent y ear, Airport Auto Rentals purc has ed 60 new automobiles at a c os t of $14,000 per c ar. The c ars will be s old to a wholes aler at an es timated $5,000 eac h as s oon as they hav e been driv en 50,000 miles . Airport Auto Rentals c omputes deprec iation ex pens e on its automobiles by the units ­of­ output method, bas ed on mileage. a. Compute the amount of deprec iation to be rec ogniz ed for eac h mile that a rental automobile is driv en. (Round your answer to 2 decim al places. Om it the "$" sign in your response.) Amount of deprec iation $ 0.18 per mile b. As s uming that the 60 rental c ars are driv en a total of 1,770,000 miles during the c urrent y ear, c ompute the total amount of deprec iation ex pens e that Airport Auto Rentals s hould rec ogniz e on this fleet of c ars for the y ear. (Om it the "$" sign in your response.) Total amount of deprec iation $ 318,600 Explanation: a. $14,000 – $5,000 $9000 = 50,000 miles = $0.18 per mile 50,000 miles b. 1,770,000 miles × $0.18 per mile = $318,600 e z to.mhe c loud.mc gr a w- hill.c om/hm_a c c ounting.tpx? todo= pr intvie w 3/6 11/18/13 4. Assignme nt Pr int Vie w awar d: 20 out of 20.00 points Twin­Cities , Inc ., purc has ed a building for $400,000. Straight­line deprec iation was us ed for eac h of the firs t two y ears us ing the following as s umptions : 25­y ear es timated us eful life, with a res idual v alue of $100,000. a. Calc ulate the annual deprec iation for the firs t two y ears that Twin­Cities owned the building. (Om it the "$" sign in your response.) Annual deprec iation $ 12,000 b. Calc ulate the book v alue of the building at the end of the s ec ond y ear. (Om it the "$" sign in your response.) Book v alue $ 376,000 Learning Objective: 09­03 Compute depreciation by the straight­line and declining­balance methods. Worksheet Twin­Cities , Inc ., purc has ed a building for $400,000. Straight­line deprec iation was us ed for ea...
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