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oliviaprejean18
18.12.2019 •
Business
On january 1, 2016, wasson company purchased a delivery vehicle costing $50,710. the vehicle has an estimated 8-year life and a $4,700 residual value. wasson uses the units-of-production depreciation method and wasson estimates that the vehicle will be driven 107,000 miles. what is the vehicle's book value as of december 31, 2017 assuming wasson uses the units-of-production depreciation method and the vehicle was driven 10,700 miles during 2016 and 18,700 miles during 2017? (do not round your intermediate calculations.)
a. $34,508.
b. $38,068.
c. $33,368.
d. $39,208.
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Ответ:
Book value= $33,008
Explanation:
Giving the following information:
On January 1, 2016:
Purchase cost= $50,710.
Residual value= $4,700
Wasson uses the units-of-production depreciation method.
The vehicle will be driven 107,000 miles.
2016= 10,700 miles
2017= 18,700
First, we need to calculate the depreciation of 2016 and 2017, using the following formula:
Annual depreciation= [(original cost - salvage value)/useful life of miles]*miles
2016= [(50,710 - 4,700)/107,000]*10,700= $4,601
207= 0.43*18,700= $8,401
Book value= depreciable value - accumulated depreciation
Book value= 46,010 - (4,601 + 8,401)= $33,008
Ответ:
They wanted to control the United States Market.