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Accounting

Sammie J’s pizza shop purchased a new delivery vehicle on January 1, 2015. The vehicle cost $16,850, has a salvage value of $2,270 and a

1 min read
Posted on 
March 31st, 2022
Home Accounting Sammie J’s pizza shop purchased a new delivery vehicle on January 1, 2015. The vehicle cost $16,850, has a salvage value of $2,270 and a

Sammie J’s pizza shop purchased a new delivery vehicle on January 1, 2015. The vehicle cost $16,850, has a salvage value of $2,270 and a useful life of 6 years. Calculate depreciation for years 1-6. On January 1 st , 2018 Sammie J’s Pizza repaired the engine in the delivery truck for a cost of $3,800 for the vehicle that was originally purchased on January 1, 2015. This is a capital expenditure. Revise the depreciation for the delivery truck with the revised cost and new useful life of 8 years. I am using straight-line depreciation, show me how the answer is calculated. you so much

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