On January 1, 2017, Blackwell Company paid $90,000 for a new delivery truck. It was estimated that the truck would be driven 300,000 miles during the next 6 years, at which time it would have a salvage value of $9,000. At the end of the second year, the odometer registered 88,000 miles. Show how the plant asset would appear in Blackwell Company's balance sheet at December 31, 2018 assuming the company uses the activity method depreciation.

Question

Quizplus · Accepted Answer

The Answer of On January 1, 2017, Blackwell Company paid $90,000 for a new delivery truck. It was estimated that the truck would be driven 300,000 miles during the next 6 years, at which time it would have a salvage value of $9,000. At the end of the second year, the odometer registered 88,000 miles. Show how the plant asset would appear in Blackwell Company's balance sheet at December 31, 2018 assuming the company uses the activity method depreciation.

On January 1, 2017, Blackwell Company Paid $90,000 for a New