{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Depreciation - Financial Reporting and Tax Considerations

Depreciation - Financial Reporting and Tax Considerations -...

Info icon This preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Depreciation: Financial Reporting and Tax Considerations On January 1, 20X1, Crimson Company purchased 3 used delivery trucks at a total cost of$53,000 . Before placing the trucks in service, the company spent $1200 painting them, $1800 replacing tires and $4000 overhauling their engines and reconditioning their bodies. Crimson management estimates that the trucks will remain in servic~6 years and have a residual value of $6,000. The trucks' combined annual mileage is expected to be 16,000 miles in each of the first 4 years and 18 ,000 miles in each of the next 2 years. Management is attempting to decide what depreciation method to use. 1) Calculate depreciation expense for years one and two for the straight-line, units of production and double declining balance methods. S{rci\~ Ct r .L. P D~ \J r ~ 9.:L'O ~ t : 2o,wo ~ 2 -: q I "() ~ k -; l'b 13? 3 Unr\S ot~iY .t Ll~ \) ( ~ <b,&Lto ~'L~ <6~0 2) Show how the trucks would be reported on the balance sheet at the end of year 2 for each three methods.
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern