sam boyer acc 291 week 2.1

sam boyer acc 291 week 2.1 - E9-1(A The cost principle...

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E9-1 (A.) The cost principle reflects each asset must be documented at the cost at which they were attained. Plant assets can alter in fair market value. The book value will then remain stable. Companies must work out the overall depreciation of the asset and distribute it over to its beneficial life of the asset. Weygandt, J. J., Kimmel, P. D., & Kieso, D. E. (2010). Financial accounting (7th ed.). Hoboken, NJ: John Wiley & Sons. (B.) 1. $5000 land 2. $200 equipment 3. $850 equipment 4. $17,500 Land improvements 5. $250 equipment 6. $8000 equipment 7. $900 Equipment 8. $75 equipment
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E9-7 (A) 1 Cost Salvage Value Depreciation Cost $30,000.00 $2,000.00 $28,000.00 Depreciation cost Useful life Annual depre expense $28,000.00 8 years $3,500.00 2011=$26,500
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2012= $23,000 2 Depreciation Cost Total units of activity Depreciation cost per unit $28,000.00 100,000 miles $0.28 Depreciable cost unit of activity/year Annual depreciation per unit expense $0.28 15,000 miles
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2011=25,800 2012= 21,600 3 book value beginning Declining balance rate Annual Depreciation of the year Expense $30,000 25.00% $7,500.00 2011= 22,500 2012= 16,875
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(B.) 1.
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Book Value 1/1/2011 $30,000 Less: Salvage Value $2,000 Depreciable Cost $28,000
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