IntMedAcct2_HW - $2,000,000 $48,500 annual depreciation...

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Intermediate Accounting II Megan Neidig P10-9 (Nonmonetary Exchanges) A.) Journal Entries-Containing Commercial Substance Notes: A Arna Inc. orginal cost- 96,000 Accum Dep- 45,000 Assets B $75,000 BV- 51,000 Accum Depr $45,000 FV- 60,000 Assets A $96,000 Cash paid- 15,000 Cash $15,000 Gain on Exch $9,000 FV-60,000 BV-51,000 Gain 9,000 Bontemps Inc. Notes: B Cash 15,000 Cost-110,000 Asset 60,000 Accum Depr-52,000 Accum Dep 52,000 BV-58,000 Asset 110,000 FV-75,000 Gain on Exch 17,000 Cash received-15,000 FV- 75,000 BV-58,000 Gain-17,000 B. Journal Entries-Lacking Commercial Substance Arna Inc. Asset 75,000 Accum Depr 45,000 Asset 96,000 Cash 15,000 Gain on Exch 9,000 Bontemps Inc. Cash 15,000 Asset 52,800 Accum Depr 45,000 Asset 96,000 Gain on Exch 1,800
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Intermediate Accounting II Megan Neidig Ex11-12 (Depreciation Computation-Addition, Change in Estimate) A.) Straight-line method Building Cost
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Unformatted text preview: $2,000,000 $48,500 annual depreciation Less: Salvage Value $(60,000) $1,940,000 Estimated Useful Life 40 years Depreciation Charge $48,500 B.) Straight-line method Addition cost $500,000 Salvage Value $(20,000) $480,000 Estimated Useful Life 30 years $16,000 annual depreciation Depreciation Charge $16,000 on addition C.)Journal Entry Depreciation Exp- Building $16,000 Accum Depr-Building $16,000 1981-1990= 10 years $48,500 annual depr $2,000,000 10 years $485,000 $485,000 total depr $1,515,000 remaining fair value D.)2009 Annual Depreciation Charge 1990-1,515,000 $2,015,000 1991-2009 = 18 years 1991-500,000 $(65,000) 1991- 2,015,000 $1,950,000 18 years 30 $65,000 depr charge $65,000 $1,170,000 $65,000 annual depreciation for building and addition...
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This note was uploaded on 08/19/2009 for the course ACC ACC300 taught by Professor Jones during the Spring '09 term at Central Pennsylvania.

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IntMedAcct2_HW - $2,000,000 $48,500 annual depreciation...

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