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Old Final Exams - Temple University Fox School of Business...

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Temple University Fox School of Business and Management Dr. Steven Balsam Accounting 011 Final Exam-Answers December 15, 1999 Instructions: You have 150 minutes. Answer the questions on the pages provided and please remember to show all work so that you may receive partial credit. Also please put your name on each page in case the pages get separated. Good luck!
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Problem 1 (30 points) A. On January 1, 2001 Richard J. Fox purchases an asset costing 20,000. The asset has an expected useful life of 10 years, and has an expected salvage or residual value of 2000. for that period of time. Calculate depreciation expense under the straight-line, sum-of- years digits, and double declining balance methods for 2001. Depreciation Expense for 2001 Straight-line 1,800= (20,000-2,000)/10 Sum-of-years digits 3,273 = (20,000-2,000)*10/55 Double declining balance 4,000 = 20,000 * 20% B. On January 1, 2002 Richard J. Fox decides that the above asset will only last a total of five years (four years remaining), while still expecting the salvage value to be $2,000.
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