homework october 20

homework october 20 - M8-3 M8-4 M8-5 M8-6 M 8-7 M8-8 M8-9...

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Unformatted text preview: M8-3, M8-4, M8-5, M8-6, M 8-7, M8-8, M8-9, M8-10, E8-5, E8-14, AP 8-1, AP8-2, M8-3(1) R(2) C(3) C(4) R(5) C(6) N(7) C(8) R(9) NM8-4Calculate the book value of a three year old machineCost: $21,000Estimated residual value of $1,000Estimated useful life of four yearsStraight line deprieciation21,000 – 1000 = 20,00020,000/4 years = $5,000M8-5Cacluate the book value of a three year old machine that cost $25,000Estimated residual value of $5,000Estimated useful life of 5 years Uses double declining balance depreciationCost- accumulated depreciation x 2/useful life – depreciation expenseFirst year 25,000- 0 x 2/5 = 10,000Second year: 25,000- 10,500- x 2/5 = 4000Third year= 25,000- 14,000 x 2/5 = 4400Net value = 25,000 – 10,000 – 4,000 – 4400 = 1600M8-6Calculate the book value of a 4 year old machine that cost 21,000, has an estimated resiudla value of 1000 and has an estimated useful life of 20,000 machine hours. Company uses units of production depreciation and ran the machine 3200 hours in year 1, 7050 hours in year 2 and 7500 hours in year 321,000- 1000/ 20,000 hours =$1/ machine hour$1 x (3200 + 7050 + 7500) = 17,75021,000 – 17,750= $3250M8- 7 Has the asset been impaired (see page 434 for full chart)a.Yesb. Noc.Yesd. NoAmount of loss? (once again see book for full chart)a.5500b. n/a because no impairmentc.32,000d. n/a because no impairmentM8-8As part of major renovation, mullins pharmacy sold shelving units that were 10 years old for...
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homework october 20 - M8-3 M8-4 M8-5 M8-6 M 8-7 M8-8 M8-9...

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