The following information is available for Chasen Company, which has an accounting year-end of December 31, 2014
The following information is available for Chasen Company, which has an accounting year-end of December 31, 2014. A delivery truck was purchased on June 1, 2011, for $60,000. It was estimated to have an $6,000 salvage value. It is estimated to have a useful life is 5 years, and an estimated total use of 120,000 miles. During 2014, the truck was driven 20,000 miles. At the end of 2014, the truck had not exceeded its total estimated use. The units-of-activity method of depreciation is being used. Land was purchased on September 1, 2014 for $260,000. Because the land is located on a decommissioned military base, and is contaminated with chemicals and pollution, its estimated use life is only 20 years. Chasen Company would use the straight-line method of depreciation, if applicable. A building was purchased on January 1, 1984, for $3,000,000. It was estimated to have a $60,000 salvage value at the end of its 30-year useful life. The straight-line method of depreciation ...