Chapter 8 - Value Depreciation Rate Annual Depreciation...

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Jordan Kirkey Oct. 29, 2007 Chapter 8 Exercises 8-1 Invoice price of machine $ 12,500 Less discount (.02 x $12,500) (250) Net purchase price 12,250 Freight charges (transportation-in) 360 Mounting and power connections 895 Assembly 475 Materials used in adjusting 40 Total cost to be recorded $ 14,020 8-3 Purchase price $375,280 Closing costs 20,100 Total cost of acquisition $395,380 Allocation of total cost Percent of Applying % Apportioned Appraised Value Total to Cost Cost Land $157,040 40% $395,380 x .40 $158,152 Land improvements 58,890 15 $395,380 x .15 59,307 Building 176,670 45 $395,380 x .45 177,921 Totals $392,600 100% $395,380 Journal entry Land 158,152 Land Improvements 59,307 Building 177,921 Cash 395,380 8-4 1. Straight Line Depreciation = $32,250 Year Annual Depreciation Year-End Book Value 2007 $32,250 $121,750 2008 32,250 89,500 2009 32,250 57,250 2010 32,250 25,000 Total $129,000
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2. DDB Depreciation Year Beginning-Year Book
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Unformatted text preview: Value Depreciation Rate Annual Depreciation Year-End Book Value 2007 $154,000 50% $77,000 $77,000 2008 77,000 50 38,500 38,500 2009 38,500 50 13,500 25,000 2010 25,000 25,000 Total 129,000 8-11 1. Disposed at no value Jan. 3 Loss on Sale of Milling Machine 68,000 Accumulated Depreciation 182,000 Milling Machine 250,000 2. Sold $35,000 Jan. 3 Cash 35,000 Loss on Sale of Milling Machine 33,000 Accumulated Depreciation 182,000 Milling Machine 250,000 3. Sold $68,000 Jan. 2 Cash 68,000 Accumulated Depreciation 82,000 Milling Machine 250,000 4. Sold for $80,000 cash Jan. 2 Cash 80,000 Accumulated Depreciation 182,000 Gain on Sale of Milling Machine 12,000 Milling Machine 250,000 8-14 Jan. 1 Copyright 418,000 Cash 418,000 Dec. 31 Amortization Expense 41,800 Accumulated Amortization 41,800...
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This note was uploaded on 04/03/2008 for the course ACC 212 taught by Professor Stovall during the Spring '08 term at Grand Valley State University.

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Chapter 8 - Value Depreciation Rate Annual Depreciation...

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