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ACCT 220 Week 5 Homework


ACCT 220 Week 5 Homework

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ACCT 220 Week 5 Homework


  • The Steel You Blind Company hires a bookkeeper who says that intangible assets can only be amortized over their legal lives. Is she right or wrong and why?






  • We Move Ya moving company purchased a new cross country moving truck and trailer on July 1, 2015. The cost of the new equipment was $150,000.  The truck and trailer is expected to have a 5 year useful life and a salvage value of $12,000.  The truck is a diesel and is expected to have a useful life of 10,000 hours.


Compute the depreciation expense under the following scenarios:

  • Straight line for 2015.





  • Units of Activity for 2015 assuming 1,700 hours of on-road use.







  • Double declining balance using twice the straight line rate for 2015 and 2016.


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