Fidelity Industries purchased a new truck for 128,000. The ...

[nelaaney]

Fidelity Industries purchased a new truck for 128,000. The company expected the truck to last 5 years or 50,000 miles, with an estimated salvage value of 16,000 at the end of that time. In the first year, the truck was driven 17,600 miles. As the accountant for Fidelity, you can depreciate this truck using the double-declining-balance method or the units of production method. a. Which method of depreciation will allow the largest write-off in the first year? b. How much greater would the depreciation expense be using your answer to (a) above?

Question 2

Pacific Products buys merchandise from a supplier for 1,320 with terms of 4/20, n/60. The invoice is dated October 15. On October 25, Pacific sends a partial payment to the supplier of 900. What is the amount that must be paid on the net date?

[bblaney]

Answer to Question 1

a. Double-declining-balance Method
b. 11,776

Answer to Question 2

382.5

[nelaaney]

YES! Correct, THANKS for helping me on my review

[marict]

Excellent