Examlex

Solved

On February 1, 2011, Delta Distribution Company Purchased a Delivery

question 164

Essay

On February 1, 2011, Delta Distribution Company purchased a delivery truck that cost $30,000. The truck has an estimated useful life of 150,000 miles and an estimated salvage value of $3,000. The truck is driven 10,000; 34,000; and 28,000 miles for the years 2011, 2012, and 2013, respectively.
Required:
1. Calculate the depreciation expense per mile using the activity (units-of-production) method.
2. Use the activity method to complete the chart below:
On February 1, 2011, Delta Distribution Company purchased a delivery truck that cost $30,000. The truck has an estimated useful life of 150,000 miles and an estimated salvage value of $3,000. The truck is driven 10,000; 34,000; and 28,000 miles for the years 2011, 2012, and 2013, respectively. Required: 1. Calculate the depreciation expense per mile using the activity (units-of-production) method. 2. Use the activity method to complete the chart below:   3.Explain why long-term assets must be depreciated,rather than recorded as expenses in the period when the asset is purchased. 4.Explain why land is NOT depreciated when other assets,such as trucks,are depreciated. 3.Explain why long-term assets must be depreciated,rather than recorded as expenses in the period when the asset is purchased.
4.Explain why land is NOT depreciated when other assets,such as trucks,are depreciated.


Definitions:

Underconfidence

A cognitive bias in which individuals underestimate their knowledge, abilities, or performance.

Frontal Lobe

A division of the cerebral cortex located just beneath the forehead that contains the motor cortex, premotor cortex, and prefrontal cortex.

Phineas Gage

A famous case in neuroscience where an individual survived a severe brain injury, leading to insights on the relationship between brain physiology and personality.

Optimal Outcome

A condition or result that is the most favorable or advantageous under the given circumstances.

Related Questions