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Company purchased a new car for use in its business on January 1,
2017.
It paid
$21,000
for the car.
Dazzle
expects the car to have a useful life of four years with an estimated residual value of zero.
Dazzle
expects to drive the car
50,000
miles during
2017,
45,000
miles during
2018,
50,000
miles in
2019,
and
55,000
miles in
2020,
for total expected miles of
200,000.
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Part 2
(Complete all answer boxes. Enter a "0" for any zero values.)
Question content area bottom
Part 1
| | Straight-line method |
| | Annual | | | | | |
| | Depreciation | | Accumulated | | | |
| Year | Expense | | Depreciation | | Book Value | |
| Start | | | | | | |
| 2017 | | | | | | |
| 2018 | | | | | | |
| 2019 | | | | | | |
| 2020 | | | | | | |
Requirements
Dialog content starts
Using the straight-line method of depreciation, calculate the following amounts for the car for each of the four years of its expected life:
| a. | Depreciation expense |
| b. | Accumulated depreciation balance |
| c. | Book value |
Answer & Explanation
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