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QUESTION: Alpha Company has the following items in its equipment account: ...

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Question

Accounting

QUESTION:

Alpha Company has the following items in its equipment account:

Assets & Date Purchased

Method of Depreciation

Cost

Salvage Value

1.

Delivery Truck (4/30/15)

Unit of Activity

$60,000

$11,000

2.

Office Furniture (6/1/15)

Straight Line

$15,000

$500

3.

Computer (4/1/15)

Double Declining

$5,000

$700

The delivery truck is estimated to have a life cycle of 200,000 miles.It was driven for 1. 16,500 miles in 2015 & 24,600 miles in 2016.

The Office Furniture has a life expectancy of 7 years.

The Computer has a life expectancy of 4 years.

Round any per unit calculations to the nearest half penny. Round all annual depreciation expenses to the nearest dollar. Use this information to compute for Fiscal Year 2016 the following values:

1. Book Value of the Delivery Truck

2. Depreciation Expense Truck

3. Book Value of the Office Furniture

4. Depreciation Expense Office Furniture

5. Book Value of the Computer

6. Depreciation Expense Computer

ANSWER:

1. _________________

2. _________________

3. _________________

4. _________________

5. _________________

6._________________

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