Janet Chin purchased a Mercedes Benz for $75,000 with a residual value of $15,000. The vehicle is used 75% for business and 25% for personal use. Using the straight-line depreciation method with a life expectancy of 3 years, how much could be charged each year as a business expense?
Ace Corporation has just purchased a Dodge Intrepid for $24,975 with a residual value of $10,500. The vehicle will be used by the information systems manager to call on stores. The vehicle is used 80% for business and the rest for personal use. Using the modified accelerated cost recovery system (MACRS), how much would Ace Corporation deduct for depreciation during the first year?
Ray Kunz, owner of Ray's Auto Service, purchased a Corvette convertible listed in Edmunds Buyer's Guide at $46,605 with a residual value of $24,235. Ray uses the Corvette in his business. The life expectancy is 5 years. Using the declining-balanced method, what would the depreciation expense be the first year?
In January 2001, Irene Baldus purchased a warehouse (nonresidential real property) in La Porte, Indiana, for $200,000. Using the Business Math Handbook, what will the allowable depreciation be each year?
Jim Jones Corporation is purchasing a used Pontiac Bonneville SE four-door for salesperson Chris Yontez. The Kiplinger's Buyer's Guide lists the vehicle at $22,995 with a residual value of $4,600. The life expectancy of the vehicle is 5 years. Using the declining-balance method (twice the straight-line rate), what will be the depreciation expense for the first year?
The Kiplinger's Car Buyer's Guide lists a used Lexus ES four-door at $31,285. Quaker Oats is purchasing this car for the vice president of sales to be used in his business. The residual value is $6,257. Using the MACRS, what will be the depreciation expense for the first year?
Melissa Banks, owner of the Panda Express, bought a delivery truck for $24,000. The truck has an estimated life of 4 years with a residual value of $5,000. Melissa wants to know which depreciation method will be best for her truck. She asks you to prepare a depreciation schedule using the declining-balance method at twice the straight-line rate.
Sam Matthews bought a new delivery truck for $40,000. The truck has a life expectancy of 5 years with a residual value of $5,000. Prepare a depreciation schedule for the sum-of-the-years'-digits method.
North Shore Shuttle bought a Toyota Landcruiser for $55,000. The Toyota has a life expectancy of 10 years with a residual value of $5,000. After 2 years, the Toyota was sold for $40,000. What was the difference between the book value and the amount received from selling the car is North Shore Shuttle used the straight-line method of depreciation.
If Ryan Corporation used the sum-of-the-years'-digits method when buying a Volvo for $40,000 with a life expectancy of 10 years and a residual value of $6,000. Calculate the depreciation expense for the first 2 years. Round each calculation to the nearest cent.
