Taskmaster Inc. Depreciable Cost and Depreciation Expense Calculation
Question 6 Homework . Answered What is the Depreciable Cost for the Van purchased by Taskmaster Inc.?
Answer:
Depreciable Cost Calculation:
Depreciable cost is calculated as the original cost of the asset minus its residual value.
In this case, the depreciable cost for the van is calculated as follows:
Depreciable cost = Cost - residual value
Depreciable cost = $20,000 - $2,000
Depreciable cost = $18,000
Question 7 Homework. Unanswered Using the straight-line method, what would Taskmaster Inc. record the depreciation expense of the Van to be for Year 1?
Answer:
Taskmaster Inc. would calculate the Van's depreciation expense using the straight-line method to be $2250 for Year 1.Straight-Line Depreciation Expense Calculation:
Depreciation expense using the straight-line method is calculated as the depreciable cost divided by the useful life of the asset.
In this case, the depreciation expense for Year 1 is calculated as follows:
Depreciation expense = Depreciable cost / useful life
Depreciation expense = $18,000 / 8 years
Depreciation expense = $2250
Question 8 Homework. Unanswered Using the Units of Activity Method, what would Taskmaster Inc. calculate the depreciation rate to be?
Answer:
Taskmaster Inc. determined the depreciation rate to be $0.09 per mile.Units of Activity Method Depreciation Rate Calculation:
Taskmaster Inc. would calculate the depreciation rate per mile using the Units of Activity Method. In this case, the depreciation rate is $0.09 per mile.
Question 9 Homework. Unanswered Using the units of activity method, what would Taskmaster Inc. record the depreciation expense of the Van to be for Year 1?
Answer:
The depreciation expense for Year 1 using the Units of Activity Method depends on the total miles driven by the van during that year.Units of Activity Method Depreciation Expense Calculation:
Taskmaster Inc. would record the depreciation expense for Year 1 based on the number of miles driven by the van. Unfortunately, the specific calculation for Year 1 cannot be determined without knowing the exact mileage driven during that year.