D Bowers week 8 HW.xlsx

# D Bowers week 8 HW.xlsx - E7-14 Determining the Cost of an...

• 6

This preview shows pages 1–2. Sign up to view the full content.

E7-14 Determining the Cost of an Asset Omar Corporation paid \$200,000 for a tract of land that had an old gas station on it. The gas station was demolished at a cost of \$20,000 and a new warehouse was construc In addition, several other costs were incurred: Legal fees (associated with the purchase of the land) \$35,000 Architect fees (associated with the new warehouse) \$42,000 Interest on the construction loan (for the new warehouse) \$18,000 (1) What value should be assigned to the tract of land? 235,000 (2) What value should be assigned to the new warehouse? 630,000 3.) Why did you include not included the cost in calculating the values assigned to the tw They are part of the acquisition cost of these assets. E7-17 Computing Depreciation Expense Equipment costing \$290,000, with an expected scrap value of \$30,000 and an estimated Calculate the depreciation expense for years 2012 to 2016 using: (a) the straight-line m Cost of Equipment \$ 290,000 Salvage Value \$ 30,000 5 year depreciation schedule Straight-line depreciation 2012 52,000 2013 52,000 2014 52,000 2015 52,000 2016 52,000 Double Declining depreciation [2/5 = 40%] 2012 104,000 2013 104,000

This preview has intentionally blurred sections. Sign up to view the full version.

This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

### What students are saying

• As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

Kiran Temple University Fox School of Business ‘17, Course Hero Intern

• I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

Dana University of Pennsylvania ‘17, Course Hero Intern

• The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

Jill Tulane University ‘16, Course Hero Intern