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Brees Corporation purchased a delivery van for $35,500

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Brees Corporation purchased a delivery van for $35,500 in 2010. the firm's financial condition immediately prior to the purchase is shown in the folloiwng horizontal statements mode.;Cash $50,000 + van NA - Acc.Dept NA = comm. stk. $50,00 + ret. earn. NA;Rev. NA - Exp. NA = Net. Inc. NA;Cash Flows NA;the Van was expected to have a useful life of 150,000 miles and a salvage value of $5,500. Acutal mileage was as follows.;2010 = 50,000;2011 = 70,000;2010 = 58,000;Required;a. compute the depreciation for each of the three years, assuming the use of units-of-production depreciation.;b. Assume that Brees earns $21,000 of cash revenue during 22010. Record the purchase of the van and the recognition of the revenue and the depreciation expense for the first year in a financial statements model like the preceding one.;c. Assume that Brees sold the van at the end of the third year for $4,000. Calculate the amount of gain or loss from the sale.

 

Paper#32786 | Written in 18-Jul-2015

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