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20171204164602solution_new_accts.docx - Solution. Question...

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Solution.Question 1.Answer:General Journal:DateAccountsDebitCredit8/2/16Land17,250Building34,500Equipment40,250Notes Payable92,000Workings:PP&E ElementAppraisedValueAllocationRatioCostAssigned1.Land$15,000115%$17,2502.Building$30,000115%$34,5003.Equipment$35,000115%$40,250TotalTotal$80,000$92,000
Allocation Ratio;$92,000/$80,000=115%Question 2.Answer:General Journal:DateAccountsDebitCredit12/31/16Amortization Expense11,250Patent ($90,000 / 8 years)11,250Question 3.Answer:1.Land$17,2502.Building$34,5003.Equipment$40,250Solution Notes:PP&E ElementAppraisedValueAllocationRatioCostAssigned
1.Land$15,000115%$17,2502.Building$30,000115%$34,5003.Equipment$35,000115%$40,250TotalTotal$80,000$92,000Allocation Ratio;$92,000/$80,000=115%Question 4.Answer:1.2017 Depreciation Expense$6,7502.Accumulated Depreciation 12/31/17$13,5003.Book Value 12/31/17$48,500WorkingsYearDep.BaseSLRateTimeDepnExpenseAccumDepnEOYBV
2016$54,00012.5%1$6,750$6,750$55,250201754,00012.5%1$6,75013,50048,500Depreciable cost = Historical cost – salvage value = 62,000 – 8,000 =54,000Question 5.Answer:1.2019 Depreciation Expense$5,4002.Accumulated Depreciation 12/31/19$29,7003.Book Value 12/31/19$32,300Solution Notes:YearDep.

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