Ch9 Homework graded

Ch9 Homework graded - Homework Manager - Financial...

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Question 1: Score 2/2 Question 2: Score 2/2 Question 3: Score 2/2 Your response Correct response Exercise 9.2: Distinguishing Capital Expenditures from Revenue Expenditures L.O. 1, 2 Identify the following expenditures as capital expenditures or revenue expenditures: a. Immediately after acquiring a new delivery truck, paid $195 to have the name of the store and other advertising material painted on the vehicle. b. Painted delivery truck at a cost of $450 after 2 years of use. c. Purchased new battery at a cost of $40 for 2-year-old delivery truck. d. Installed an escalator at a cost of $17,500 in a three-story building that had been used for some years without elevators or escalators. e. Purchased a pencil sharpener at a cost of $15.00. f. Original life of the delivery truck had been estimated at 4 years and straight-line depreciation of 25 percent yearly had been recognized. After 3 years' use, however, it was decided to recondition the truck thoroughly, including adding a new engine. Ex. 9.2 a. Capital expenditure (17%) b. Revenue expenditure (17%) c. Revenue expenditure (17%) d. Capital expenditure (17%) e. Revenue expenditure (17%) f. Capital expenditure (17%) Exercise 9.2: Distinguishing Capital Expenditures from Revenue Expenditures L.O. 1, 2 Identify the following expenditures as capital expenditures or revenue expenditures: a. Immediately after acquiring a new delivery truck, paid $195 to have the name of the store and other advertising material painted on the vehicle. b. Painted delivery truck at a cost of $450 after 2 years of use. c. Purchased new battery at a cost of $40 for 2-year-old delivery truck. d. Installed an escalator at a cost of $17,500 in a three-story building that had been used for some years without elevators or escalators. e. Purchased a pencil sharpener at a cost of $15.00. f. Original life of the delivery truck had been estimated at 4 years and straight-line depreciation of 25 percent yearly had been recognized. After 3 years' use, however, it was decided to recondition the truck thoroughly, including adding a new engine. Ex. 9.2 a. Capital expenditure b. Revenue expenditure c. Revenue expenditure d. Capital expenditure e. Revenue expenditure f. Capital expenditure Your response Correct response Exercise 9.3: Depreciation for Fractional Years L.O. 3 On August 3, Srini Construction purchased special-purpose equipment at a cost of $1,000,000. The useful life of the equipment was estimated to be 8 years, with a residual value of $50,000. a. Compute the depreciation expense to be recognized each calendar year for financial reporting purposes under the straight-line depreciation method (half-year convention). b. Compute the depreciation expense to be recognized each calendar year for financial reporting purposes under the 200 percent declining-balance method (half-year convention). Round your answers to the nearest dollar amount. Under 200% Declining-Balance, switch to straight line
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Ch9 Homework graded - Homework Manager - Financial...

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