Depreciation for Excel Delivery and Allegheny Corporation
Not what you're looking for?
E 11-1. On January 1, 2011, the Excel Delivery Company purchased a delivery van for $33,000. At the end of its five-year service life, it is estimated that the van will be worth $3,000. During the five-year period, the company expects to drive the van 100,000 miles.
Required
Calculate annual depreciation for the van using each of the following methods. Round all computations to the nearest dollar.
1. Straight line
2. Sum-of-the-years' digits
3. Double-declining balance
4. Units of production using miles driven as a measure of output, and the following actual mileage:
Year Miles
2011 22,000
2012 24,000
2013 15,000
2014 20,000
2015 21,000
E11-3
On October 1, 2011, the Allegheny Corporation purchased machinery for $115,000. The estimated service life of the machinery is 10 years and the estimated residual value is $5,000. The machine is expected to produce 220,000 units during its life.
Required
Calculate depreciation for 2011 and 2012 using each of the following methods. Partial-year depreciation is calculated based on the number of months the asset is in service. Round all computations to the nearest dollar.
1. Straight line
2. Double-declining balance
3. Units of production (units produced in 2011, 10,000; units produced in 2012, 25,000)
Purchase this Solution
Solution Summary
The expert calculates depreciation for Excel Delivery and Allegheny Corporations.
Purchase this Solution
Free BrainMass Quizzes
Basics of corporate finance
These questions will test you on your knowledge of finance.
Paradigms and Frameworks of Management Research
This quiz evaluates your understanding of the paradigm-based and epistimological frameworks of research. It is intended for advanced students.
Change and Resistance within Organizations
This quiz intended to help students understand change and resistance in organizations
Organizational Behavior (OB)
The organizational behavior (OB) quiz will help you better understand organizational behavior through the lens of managers including workforce diversity.
Understanding Management
This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.