Exam 8: Operating Assets: Property, Plant and Equipment, and Intangibles

Yellow Dog Transit sold an old truck on December 31, 2016, for $18,400 cash.The following data was available when the truck sold: Acquisition cost \ 75,000 Estimated residual value at time of acquisition 8,000 Accumulated depreciation on December 31,2016 after adjustment 53,600 ? When this transaction is recorded, it should include a(n)

Which statement is true concerning operating assets?

Norwood, Inc.purchased a crane at a cost of $80,000.The crane has an estimated residual value of $5,000 and an estimated life of 8 years, or 12,500 hours of operation.The crane was purchased on January 1, 2016 and was used 2,700 hours in 2016 and 2,600 hours in 2017. ​ -Refer to the information about Norwood, Inc. If Norwood uses the units-of-production method, what is the depreciation rate per hour for the equipment?

Wexford Co.purchased a new delivery truck at the beginning of 2016.The truck has a cost of $37,000, an estimated life of 5 years, and an estimated residual value of $7,000.A full year's depreciation expense is to be recorded in 2016.The truck was driven 20,000 miles during 2016 and 24,000 miles during 2017.The number of expected miles over five years is 100,000. ​ -Refer to information about Wexford Co. ​ Wexford Co.wants to use the depreciation method that will result in the highest depreciation expense for 2016.Which method should be used?

Depreciation is