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vodka [1.7K]
3 years ago
8

On January 1, 2020, Snitchy Company purchased a tractor-trailer rig for $188,000.

Business
1 answer:
olasank [31]3 years ago
6 0

Answer:a

Explanation:

Cost of Trailer - $188,000

Salvage value $28,000

Useful life: 8 years

Depreciable amount - $160,000

Expected miles coverage - 352,000

Mileage in 2020 = 44,500

Mileage in 2021 = 41480

Depreciation rate = 1/8*100 = 12.5%

Straight line :

160,000/8 = 20,000                     2020                      2021

                                                     20000                     20000

Units of production   (44500/352000*160000) (41480/352000*160000)

                                                   20,227.27                      18,854.54

Double declining                   25%*188000            25%*141000

balance                                        47000                      35250

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