Kate Company purchased a tractor at a cost of $120,000. The tractor has an estimated salvage value of $20,000 and an estimated life of 8 years, or 12,000 hours of operation. The tractor was purchased on January 1, 2016 and was used 2,400 hours in 2016 and 2,100 hours in 2017. What method of depreciation will produce the maximum depreciation expense in 2017

1 answer
Question:

Kate Company purchased a tractor at a cost of $120,000. The tractor has an estimated salvage value of $20,000 and an estimated life of 8 years, or 12,000 hours of operation. The tractor was purchased on January 1, 2016 and was used 2,400 hours in 2016 and 2,100 hours in 2017. What method of depreciation will produce the maximum depreciation expense in 2017

Answers

Options :A) Straight-lineB) Units-of-productionC) Double-declining-balanceD) All methods produce the same expense in 2017Answer:C.) Double declining balance Explanation:Given the following:Cost of tractor = $120,000Salvage value = $20,000Estimated life = 8 years or 12000 hours of operation Purchase date = January 1, 20162016 usage = 2400 hours 2017 usage = 2100 hours Depreciation Expense :Using the straight line Depreciation :(120,000 - 20,000) / 8 = 100,000 / 8 = $12,500Double declining balance :(100%)/8 = (0.125) * 2 = 0.250.25 * 120,000 = 30,000Unit of production:(120,000 - 20,000) * (2100 / 12,000)= 100,000 * 0.175 = $17500

Similar Solved Questions

2 answers

I’m bad at math I need help lol

I’m bad at math I need help lol...
1 answer

What is an insurance premium? A. The money paid each month to receive insurance coverage B. The estimated cost of an insurance plan over 20 years C. The maximum amount of money an insurance policy will pay out D. The percentage of a bill that a customer must pay without insurance

What is an insurance premium? A. The money paid each month to receive insurance coverage B. The estimated cost of an insurance plan over 20 years C. The maximum amount of money an insurance policy will pay out D. The percentage of a bill that a customer must pay without insurance...
2 answers

What is the greatest common factor of (8x - 6)

what is the greatest common factor of (8x - 6)...
1 answer

How many roots do u thinn

How many roots do u thinn...
1 answer

You are buying a balloon for a party. A balloon costs $2. A large balloon coats $3. Write algebraic expression for the cost of x small balloons and y large balloons. Then find the total cost for 13 small balloons and 9 large balloons.

You are buying a balloon for a party. A balloon costs $2. A large balloon coats $3. Write algebraic expression for the cost of x small balloons and y large balloons. Then find the total cost for 13 small balloons and 9 large balloons....
2 answers

All new cells come from ______. growth cells

All new cells come from ______. growth cells...
1 answer

What occurs during sexual reproduction​

what occurs during sexual reproduction​...
2 answers

Cueva de las manos in argentina is known for cave paintings of what?

Cueva de las manos in argentina is known for cave paintings of what?...
1 answer

A coach whose communication style is direct, confident, constructive, and two-way uses which communication style?

A coach whose communication style is direct, confident, constructive, and two-way uses which communication style?...
2 answers

Based on the population density maps above, what can be inferred about Britain's migration patterns? A. The population of Britain was greater in 1701 than in 1911. B. Britain was more densely populated in 1911 than in 1701. C. Fewer people lived in urban areas in 1911 than in 1701. D. The northern part of the island was more densely populated than the southern part in 1701

Based on the population density maps above, what can be inferred about Britain's migration patterns? A. The population of Britain was greater in 1701 than in 1911. B. Britain was more densely populated in 1911 than in 1701. C. Fewer people lived in urban areas in 1911 than in 1701. D. The northern p...
1 answer

B(1)=−54 b(n)= b(n−1) x 4/3 ​ What is the 4th term in the sequence?

b(1)=−54 b(n)= b(n−1) x 4/3 ​ What is the 4th term in the sequence?...
1 answer

Part A Write the multiplication expression shown by the model. Do not solve the problem. Explain the expression written in Part A. Include the final product and how it is shown with the model.

Part A Write the multiplication expression shown by the model. Do not solve the problem. Explain the expression written in Part A. Include the final product and how it is shown with the model....
1 answer

Write an equation for the nth term of the the sequence: -2, 1, 4,7

Write an equation for the nth term of the the sequence: -2, 1, 4,7...
2 answers

PLLLLLLLS HELP WILL GIVE BRAILEST 20 POINTS colby is standing next to a water tower, he is 6ft tall and casts a 3 foot shadow. if the water tow cast a 60 foot tall shadow, how tall is the tower? 30 120 180 240

PLLLLLLLS HELP WILL GIVE BRAILEST 20 POINTS colby is standing next to a water tower, he is 6ft tall and casts a 3 foot shadow. if the water tow cast a 60 foot tall shadow, how tall is the tower? 30 120 180 240...
1 answer

How many sheets of papers were in Jonas folders?

How many sheets of papers were in Jonas folders?...
1 answer

Abigail's favorite television show usually has 8 minutes of commercials for every 30-minute episode. If Abigail watches 3 episodes, predict how many minutes of commercials she watches.

Abigail's favorite television show usually has 8 minutes of commercials for every 30-minute episode. If Abigail watches 3 episodes, predict how many minutes of commercials she watches....
1 answer

What is the perimeter of this triangle ?

What is the perimeter of this triangle ?...
1 answer

What is the major product for the following reaction? CH3(CH2)4CI +NAOCH3 CH3(CH2)40CH3 CH3(CH2)30CH3 CH3(CH2)4CH3 CH3(CH2)3CH3 CH3(CH2)40CH2CH3

What is the major product for the following reaction? CH3(CH2)4CI +NAOCH3 CH3(CH2)40CH3 CH3(CH2)30CH3 CH3(CH2)4CH3 CH3(CH2)3CH3 CH3(CH2)40CH2CH3...
2 answers

The plants in a red-tailed hawk’s food chain produce 3 million kcal of chemical energy per day. How much energy is available to the hawk’s trophic level, assuming 90% loss at each level?

The plants in a red-tailed hawk’s food chain produce 3 million kcal of chemical energy per day. How much energy is available to the hawk’s trophic level, assuming 90% loss at each level?...

-- 0.018054--