Determining asset cost, preparing depreciation schedules (3 methods), and identifying depreciation results that meet management objectives
on january 3, 2018, rapid delivery service purchased a truck at a cost of $100,000. before placing the truck in service,
rapid spent $3,000 painting it, $600 replacing tires, and $10,400 overhauling the engine. the truck should remain in
service for ve years and have a residual value of $12,000. the truck’s annual mileage is expected to be 32,000 miles in
each of the rst four years and 8,000 miles in the fth year—136,000 miles in total. in deciding which depreciation method to use, andy sargeant, the general manager, requests a depreciation schedule for each of the depreciation methods (straight-line, units-of-production, and double-declining-balance).
requirements
1. prepare a depreciation schedule for each depreciation method, showing asset cost, depreciation expense, accumulated
depreciation, and asset book value.
2. rapid prepares nancial statements using the depreciation method that reports the highest net income in the early
years of asset use, consider the rst year that rapid uses the truck. identify the depreciation method that meets the
company’s objectives.

The balance sheet contains the following major sections: current assets long-term investments property, plant, and equipment intangible assets other assets current liabilities long-term liabilities contributed capital retained earnings accumulated other comprehensive income required: the following is a list of accounts. using the letters a through j, indicate in which section of the balance sheet each of the accounts would be classified. if an account does not belong under one of the sections listed, select "not under any of the choices" from the classification drop down box. for all accounts, indicate if the account is a contra account or an account that would normally be deducted on the balance sheet by selecting "yes" from the second drop down box, otherwise select "no". account classification contra or deducted (yes/no) 1. cash 2. bonds payable (due in 8 years) 3. machinery 4. deficit 5. unexpired insurance 6. franchise (net) 7. fund to retire preferred stock 8. current portion of mortgage payable 9. accumulated depreciation 10. copyrights 11. investment in held-to-maturity bonds 12. allowance for doubtful accounts 13. notes receivable (due in 3 years) 14. property taxes payable 15. deferred taxes payable 16. additional paid-in capital on preferred stock 17. premium on bonds payable (due in 8 years) 18. work in process 19. common stock, $1 par 20. land 21. treasury stock (at cost) 22. unrealized increase in value of available-for-sale securities

Margaret company reported the following information for the current year: net sales $3,000,000 purchases $1,957,000 beginning inventory $245,000 ending inventory $115,000 cost of goods sold 65% of sales industry averages available are: inventory turnover 5.29 gross profit percentage 28% how do the inventory turnover and gross profit percentage for margaret company compare to the industry averages for the same ratios? (round inventory turnover to two decimal places. round gross profit percentage to the nearest percent.)

In order to be thoughtful about the implementation of security policies and controls, leaders must balance the need to reduce with the impact to the business operations. doing so could mean phasing security controls in over time or be as simple as aligning security implementation with the business’s training events.