1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Hatshy [7]
3 years ago
12

Iverson Company purchased a delivery truck for $45,000 on January 1, 2018. The truck was assigned an estimated useful life of 10

0,000 miles and has a residual value of $10,000. The truck was driven 18,000 miles in 2018 and 22,000 miles in 2019. Compute depreciation expense using the units-of-activity method for the years 2018 and 2019. Depreciation expense for 2018$ Depreciation expense for 2019
Business
1 answer:
Gnom [1K]3 years ago
7 0

Answer:

Depreciation expense for 2018 is $6,300.

Depreciation expense for 2019 is $7,700.

Explanation:

The unit-of-production method also known as units-of-activity method is used when the asset value closely relates to the units of output it is able to produce. It is expressed with the formula below:

(Original Cost - Salvage value) / Estimated production capacity x Units/year

At Year 2018, depreciation expense (DE) is: ($45,000 - $10,000) / 100,000 miles x  18,000 miles = $6,300/year

At Year 2019, depreciation expense (DE) is: ($45,000 - $10,000) / 100,000 miles x  22,000 miles = $7,700/year

Accumulated depreciation for 2 years is $6,300 + $7,700 = $14,000.

Note that this depreciation method results in higher depreciation charge when the asset is heavily used, at this time, it was in Year 2019.

The NBV under this method is: $45,000 - $14,000 = $31,000.

You might be interested in
During the Asian financial crisis, the leading financial powers seemingly either declined to take part in the rescue operations,
igor_vitrenko [27]

Answer:

The correct answer is ASEAN+3.

Explanation:

ASEAN + 3 is the association of Southeast Asian nations, which was created in 1967 by Thailand, Indonesia, the Philippines, Singapore and Malaysia. Currently it is made up of 10 countries in Southeast Asia, and its general objective is to increase the economy of these countries and promote stability in the region. The +3 is to recognize the accession of three countries that do not belong to this region, which are: Japan, China and South Korea.

8 0
3 years ago
If GDP is $15 trillion, how many years will it take for GDP to increase to $30 trillion if annual growth is 2 percent
Varvara68 [4.7K]
Y = original value • growth ^(time/period of growth)

30000000000000 = 15000000000000 • (1+0.02)^(x/1)

Divide both sides by 15 trillion

2 = (1.02)^(x)

take logarithm of both sides

log2 = log1.02^x

Bring x down using log law

log2 = xlog1.02

Divide both sides by log1.02

x = 35

35 years

8 0
2 years ago
Visual merchandising is three-dimensional and real, which is more effective than flat drawings or photos. True Or False
Dmitry_Shevchenko [17]
I would assume true, visual merchandising is more of displaying products and flat drawing aren’t as interactive.
7 0
2 years ago
If a healthcare employee feels they discriminated based on their disability, which organization would assist in enforcing the ap
natka813 [3]
The ADA protects a person who is regarded (or treated) by an employer as if he or she has a substantially limiting impairment, even if he or she has no impairment or has only a minor impairment, particularly if the employer acts based on myths, fears, or stereotypes about a person's medical condition.

The Rehabilitation Act makes it illegal to discriminate on the basis of disability in programs conducted by Federal agencies, in programs receiving Federal financial assistance, in Federal employment, and in the employment practices of Federal contractors. The standards for determining employment discrimination under the Rehabilitation Act are the same as those used in the Americans with Disabilities Act.
3 0
3 years ago
Select all that apply Careers in the agriculture, food & natural resources career cluster include: 1)chef 2)graphic designer
enyata [817]

I think it's one and four but not so sure?

Did that help?

8 0
3 years ago
Read 2 more answers
Other questions:
  • When using the ice point method for calibrating thermometers you’ll need to place the thermometer in the ice water and adjust th
    15·1 answer
  • If congress and the president decide an expansionary fiscal policy is​ necessary, what changes should they make in government sp
    14·1 answer
  • Pedro owns a 50% interest in a limited partnership that operates an apartment complex. During the current year, the partnership
    10·1 answer
  • A collusive agreement between two firms is likely to break down when​ ____________. A. it is easy to punish cheaters. B. firms v
    7·1 answer
  • Michael works as a financial advisor in a doctor’s office. The two organizations that Michael most likely belongs to are the
    10·2 answers
  • Evelyn, who is in charge of an ad hoc team, holds a meeting with her team and explains the purpose of the project and outlines w
    9·1 answer
  • The theory of production deals with the relationship between the factors of production and
    5·2 answers
  • Leftown is a former guest who owes the Munchies Restaurant $750 for a banquet. Restaurant managers have determined that this deb
    11·1 answer
  • Vijay Inc. purchased a three-acre tract of land for a building site for $310,000. On the land was a building with an appraised v
    11·1 answer
  • Has anybody took financial literacy on edmentum? Please reply to this.
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!