On January 1,2012,a Company Buys a Truck for $42,000 Cash $\quad$

question 165

Essay

On January 1,2012,a company buys a truck for $42,000 cash.It has estimated residual value of $2,000,and an estimated life of 4 years,or 200,000 miles.Assume the company uses units-of-production depreciation.The truck drove 40,000 miles in 2012,60,000 miles in 2013,80,000 miles in 2014,and 20,000 miles in 2015.Please complete the depreciation schedule below. $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$$\text { Depreciation for the Year }$
$$\begin{array} { | c | c | c | c | c | c | c | } \hline \text { Date } & \text { Asset Cost } & \begin{array} { c } \text { Depreciable } \\\text { Cost }\end{array} & \begin{array} { c } \text { Depreciation } \\\text { Rate }\end{array} & \begin{array} { c } \text { Depreciation } \\\text { Expense }\end{array} & \begin{array} { c } \text { Accumulated } \\\text { Depreciation }\end{array} & \begin{array} { c } \text { Book } \\\text { Value }\end{array} \\\hline 1 - 1 - 2012 & & & & & & \\\hline 12 - 31 - 2012 & & & & & & \\\hline 12 - 31 - 2013 & & & & & & \\\hline 12 - 31 - 2014 & & & & & & \\\hline 12 - 31 - 2015 & & & & & & \\\hline\end{array}$$

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Definitions:

Wealth

An abundance of valuable resources or valuable material possessions, often considered in terms of money, property, and assets.

Income

The financial earnings received by a person or household from various sources like work, investments, or benefits, typically measured on an annual basis.

Born to Wealth

Indicates individuals who inherit considerable financial resources or assets from their families, thus starting life with significant economic advantages.

Life Span

The maximum or typical length of time an organism is expected to live.