Farr Corp. purchased a new delivery van on January 1, 2020 and chose to use the double declining balance depreciation method. The van cost $48,000 with an estimated life of five years and a $12,000 salvage value. After the year end adjustment, how much accumulated depreciation would be recorded on the van at December 31, 2021

$30,720

Explanation:

First, we will calculate the depreciation for 2020.

Depreciation for 2020 = ($48,000 cost - 0) × 40%

= $19,200

Depreciation for 2021 = ($48,000 cost - $19,200 depreciation 2020) × 40%

= $11,520

Accumulated depreciation at the end of 2021

= $11,520 + $19,200

= $30,720

The value of $30,720 will be recorded as accumulated depreciation on the value of the van at December 31, 2021.

• Note, the asset's annual depreciation will be 20% of the depreciation cost since its useful life is 5. It will however be 40% since we are using the double declining balance method.

whole quiz

1. the sum of all activities involved in getting high-quality products into the marketplace

2.operations

3. the principle of looking at the supply chain as a whole in order to improve the overall flow through the system.

4. produced; performed

5. activities producing tangible products, such as radios, newspapers, buses, and textbooks.

6. activities producing intangible and tangible products, such as entertainment, transportation, and education.

7.   customer focus

8. analyzing a competitor's products to identify desirable improvements

9. the systematic direction and control of the processes that transform resources into finished projects that create value for and provide benefits to consumers.

10. operation management.

your welcome leave a rate and a < 3

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