ACCT 220 Week 5 Homework Answers
- The Steel You Blind Company hires a bookkeeper who says that intangible assets can only be amortized over their legal lives. Is she right or wrong and why?
- We Move Ya moving company purchased a new cross country moving truck and trailer on July 1, 2015. The cost of the new equipment was $150,000. The truck and trailer is expected to have a 5 year useful life and a salvage value of $12,000. The truck is a diesel and is expected to have a useful life of 10,000 hours.
Compute the depreciation expense under the following scenarios:
- Straight line for 2015.
- Units of Activity for 2015 assuming 1,700 hours of on-road use.
- Double declining balance using twice the straight line rate for 2015 and 2016.