80.2K

Verified Solution

Link Copied!

Larkspur, Inc. purchased a delivery truck for $34,000 on January 1, 2022. The truck has an expected salvage value of $5,000, and is expected to be driven 100,000 miles over its estimated useful life of 8 years. Actual miles driven were 13,800 in 2022 and 10,200 in 2023. (a1) (a2) (b1) Assume that Larkspur uses the straight-line method. Prepare the journal entry to record 2022 depreciation expense. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation eTextbook and Media Debit Credit

Larkspur, Inc purchased a delivery truck for $34,000 on January 1, 2022. The truck has an expected salvage value of $5,000, and is expected to be driven 100,000 miles over its estimated useful life of 8 years. Actual miles driven were 13,800 in 2022 and 10,200 in 2023. (a1) (a2) (b1) Assume that Larkspur uses the straight-line method. Prepare the journal entry to record 2022 depreciation expense. (Credit account titles are outomatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts) Calculate depreciable cost per mile under units-of-activity method. (Round answer to 2 decimal places, es. 0.50) List of Accounts Attempts: 1 of 3 use (a2) Your answer is correct. Compute depreciation expense for 2022 and 2023 using (1) the straight-line method, (2) the units-of-activity method, and (3) the double-declining-balance method

Answer & Explanation Solved by verified expert

See Answer