Question 9: A semi-truck with an estimated 250,000-mile life and a $34,000 salvage value, was purchased on January 1, 20X1, for $376,000. If the semi-truck was run for 62,000 miles in 20X1, 77,000 miles in 20X2, 56,000 miles in 20X3, and 71,000 miles in 20X4, how much would the "depreciation expense be in 20X3" using an activity-based method? Use a manual formula. Question 10: Assume the same details as Question 9, except that you want to find how much would the semi-truck's "depreciation expense be in 20X4." Use a manual formula. Hint: Read Question 9 again carefully to get to correct formula inputs.

Question 9: A semi-truck with an estimated 250,000-mile life and a $34,000 salvage value, was purchased on January 1, 20X1, for $376,000. If the semi-truck was run for 62,000 miles in 20X1, 77,000 miles in 20X2, 56,000 miles in 20X3, and 71,000 miles in 20X4, how much would the "depreciation expense be in 20X3" using an activity-based method? Use a manual formula. Question 10: Assume the same details as Question 9, except that you want to find how much would the semi-truck's "depreciation expense be in 20X4." Use a manual formula. Hint: Read Question 9 again carefully to get to correct formula inputs.

College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)

22nd Edition

ISBN:9781305666160

Author:James A. Heintz, Robert W. Parry

Publisher:James A. Heintz, Robert W. Parry

Chapter18: Accounting For Long-term Assets

Section: Chapter Questions

Problem 3CE

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