Question

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Sandhill Chemicals Company acquires a delivery truck at a cost of $30,800 on January 1, 2022. The truck is expected to have a salvage value of $3,700 at the end of its 4-year useful life. Compute annual depreciation for the first and second years using the straight line method. First Year Second Year Annual depreciation under straight-line methods

Answer 1

0 Cost of trud - $30,800 salvage value = 13,700 Life = 4 year Depreciahon pa annum - Cost - salvage, 30,800 -5700 Life = 6775.pia second year 6775 Frost year $6775 Annual depreciation Note: Under Straight the method year depreciahon will be same for every Sold equipment for 23, 160 on July 31 2022. Original cost = 78,110 , accumulated depeciahen = 38,800. Depreciation for 7 months in July Q1 2012 $ 3500 Book value on July 31, 2012 - Original cost - Depreciations = 78,110 - (35,300 43500) Book value = 36,310 (a) Machabo Depreciation ....... 3500 Machthe leqrépment) Depreciation. 3570 To Accumulated 3500 3000 Depreciation -grupert 70) cash 23160 Lost on disposal 13150 To Equipment 36310 (hoes on sale - Sale proceeds – Book valuce = 23,160 - 36310 =$(13150)

Aization expence for the first year = Cost useful toge (estimated) 1,59,300 lo = 15,930 Amortization Expense ...Do 15930 To Accumulated Amortization. 15950 - patent Patent or reported under Balance sheets under head of Assets - Solangreble aksete of les Planglable asset 1,59,300 hess Amortization 165,9300 (Transfer to Detit PenL) expense 143370