Opt_Prob_Solutions_chap_8_Solutions

# Opt_Prob_Solutions_chap_8_Solutions - Chapter 8 Optional...

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Chapter 8 Optional Problem Solutions P8–3. Req. 1 Cost of each machine: Machine A B C Total Purchase price. .................................... \$7,600 \$25,600 \$6,800 \$40,000 Installation costs. ................................. 300 500 200 1,000 Renovation costs. ................................ 2,000 400 600 3,000 Total cost. ......................................... \$9,900 \$26,500 \$7,600 \$44,000 Req. 2 Computation of depreciation at the end of year 1 for each machine: Machine Method Computation A Straight-line (\$9,900 - \$1,500) x 1/5 years = \$1,680 B Units-of-production (\$26,500 - \$900) ÷ 20,000 hours = \$1.28 \$1.28 x 2,000 hours = \$2,560 C Double-declining-balance (\$7,600 - 0) x 2/4 years = \$3,800 Adjusting entry: Depreciation expense (\$1,680 + \$2,560 + \$3,800) (+E, - SE) 8,040 Accumulated depreciation, Machine A (+XA, - A) 1,680 Accumulated depreciation, Machine B (+XA, - A) 2,560 Accumulated depreciation, Machine C (+XA, - A) 3,800

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AP8–5. Req. 1
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## This homework help was uploaded on 02/19/2009 for the course HA 230 taught by Professor Davidlee during the Fall '06 term at Cornell.

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Opt_Prob_Solutions_chap_8_Solutions - Chapter 8 Optional...

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