Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. a tractor for over-the-road hauling is purchased f

A tractor for over-the-road hauling is purchased for $90,000. It is expected to be of use...

Free

60.1K

Verified Solution

Question

Finance

A tractor for over-the-road hauling is purchased for $90,000. Itis expected to be of use to the company for 6 years, after which itwill be salvaged for $4,000. Calculate the depreciation deductionand the unrecovered investment during each year of the tractor'slife. Use double declining balance switching to straightline depreciation. Please show excel equations if excel isused!

Answer & Explanation Solved by verified expert
4.0 Ratings (717 Votes)

Double declining depreciation rate = 2 /useful life

                                  = 2/6

                                  = .3333333 or 33.33333%

Depreciation expense End of year values
Carrying value Rate Depreciation expense Accumulated depreciation Carrying value
1 90000 33.33333% 30000 30000 90000-30000=60000
2 60000 33.33333%` 20000 30000+20000=50000 60000-20000=40000
3 40000 33.333333% 13333 50000+13333= 63333 40000-13333= 26667
4 26667 33.333333%` 8889 63333+8889 = 72222 26667-8889= 17778
5 17778 33.333333% 5926 72222+5926= 78148 17778-5926=11852
6 11852 33.33333% 3951 78148+3951= 82099 7901

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

A tractor for over-the-road hauling is purchased for $90,000. Itis expected to be of use to the company for 6 years, after which itwill be salvaged for $4,000. Calculate the depreciation deductionand the unrecovered investment during each year of the tractor'slife. Use double declining balance switching to straightline depreciation. Please show excel equations if excel isused!

Other questions asked by students

Q

Show that among all collections with 2n-1 natural numbers in them there are exactly n numbers whose...

Basic Math
Q

1. On your final exam for your assessment course, your instructor reports that there was a...

Basic Math
Q

Considering the hazards exposed in dental radiography and according to OSHA regulations, dental offices are required...

Medical Sciences
Q

Explain \"clonal expansion\" of lymphocytes and how it contributes to the features of adaptive immunity, such...

Medical Sciences
Q

An element a in a field F is called a primitive nth root of unity if...

Advance Math
Q

E. coli is transmitted throughformitefecal-oralvectornone of these

Biology
Q

1 kg of water at 373 K is converted into steam at same temperature Volume...

Physics
Q

Large semitrailer trucks cost 75 000 each A trucking company buys such a truck and...

Basic Math
Q

Simplify the expression 2 4x 5r2 52 using factoring and exponential rule

Calculus
Q

Please answer the following question Travel In Style Limited issued $1,000,000 of 9% bonds on...

Accounting
Q

CALATO Bref Exerci 6-02 LI NENE Your newer is incorrect. Try again Statman Company took...

Accounting
Q

An overhead efficiency variance occurs when: A) The actual number of hours needed to manufacture...

Accounting