Taskmaster Inc. Depreciable Cost and Depreciation Expense Calculation

Question 6 Homework . Answered What is the Depreciable Cost for the Van purchased by Taskmaster Inc.?

Answer:

Depreciable Cost Calculation:

Depreciable cost is calculated as the original cost of the asset minus its residual value.

In this case, the depreciable cost for the van is calculated as follows:

Depreciable cost = Cost - residual value

Depreciable cost = $20,000 - $2,000

Depreciable cost = $18,000

Question 7 Homework. Unanswered Using the straight-line method, what would Taskmaster Inc. record the depreciation expense of the Van to be for Year 1?

Answer:

Straight-Line Depreciation Expense Calculation:

Depreciation expense using the straight-line method is calculated as the depreciable cost divided by the useful life of the asset.

In this case, the depreciation expense for Year 1 is calculated as follows:

Depreciation expense = Depreciable cost / useful life

Depreciation expense = $18,000 / 8 years

Depreciation expense = $2250

Question 8 Homework. Unanswered Using the Units of Activity Method, what would Taskmaster Inc. calculate the depreciation rate to be?

Answer:

Units of Activity Method Depreciation Rate Calculation:

Taskmaster Inc. would calculate the depreciation rate per mile using the Units of Activity Method. In this case, the depreciation rate is $0.09 per mile.

Question 9 Homework. Unanswered Using the units of activity method, what would Taskmaster Inc. record the depreciation expense of the Van to be for Year 1?

Answer:

Units of Activity Method Depreciation Expense Calculation:

Taskmaster Inc. would record the depreciation expense for Year 1 based on the number of miles driven by the van. Unfortunately, the specific calculation for Year 1 cannot be determined without knowing the exact mileage driven during that year.