NP_10e_Ch09_Solutions - P9-2 Siber Computers1. Schedule of...

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Unformatted text preview: P9-2 Siber Computers1. Schedule of Assets for Training CenterLandBuildingEquipmentAttorney's fee, land acquisition$35,200 Cost of land$597,000 Architect's fee, building design$102,000 Building$1,025,000 Parking lot & sidewalk$135,600 Electrical wiring, building$168,000 Landscaping$55,000 Cost of surveying land$8,900 Training equipment, tables and chairs$136,400 Installation of training equipment$65,600 Cost of grading the land$14,000 Cost of changes in bldg to soundproof$58,700 Administrative salary$14,400 $7,200 $43,200 $7,200 Total cost$655,500 $211,800 $1,396,900 $209,200 2. Impact on ProfitabilityThis classification of property, plant & equipment into different categories enables the company to preschedules based on different useful lives. For example, Land will be considered to have unlimited usetherefore will not be subject to depreciation, whereas buidling will probable be depreciated over 20-40different depreciation schedules will result in variations in profitability depending on the amounts assigcategory and their respective useful lives.Land ImprovementsTotal$35,200 $597,000 $102,000 $1,025,000 $135,600 $168,000 $55,000 $8,900 $136,400 $65,600 $14,000 $58,700 $72,000 $2,473,400 epare depreciationeful life and 0 years. These gned to each P9-4 Roman's Construction Company1. Annual Depreciation SchedulesStraight-Line=($721,000 - $70,000) / 6 = $651,000 / 6 = $108,500YearDepreciationAcc. DepreciatioCarrying Value$721,000 1$108,500 $108,500 $612,500 2$108,500 $217,000 $504,000 3$108,500 $325,500 $395,500 4$108,500 $434,000 $287,000 5$108,500 $542,500 $178,500 6$108,500 $651,000 $70,000 Units of Production=$651,000 / 10,000 hrs = $65.10 per hourYear...
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This note was uploaded on 09/20/2009 for the course UGBA 102A taught by Professor Udpa during the Summer '07 term at University of California, Berkeley.

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NP_10e_Ch09_Solutions - P9-2 Siber Computers1. Schedule of...

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