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ACC 363 - P10-3A - PROBLEM 10-3A(a(1 Purchase price $38,500...

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PROBLEM 10-3A (a) (1) Purchase price .................................................................... $38,500 Sales tax .............................................................................. 2,200 Shipping costs .................................................................... 175 Insurance during shipping ................................................ 75 Installation and testing ...................................................... 50 Total cost of machinery ............................................. $41,000 Machinery ............................................................. 41,000 Cash .............................................................. 41,000 (2) Recorded cost ..................................................................... $41,000 Less: Salvage value .......................................................... 5,000 Depreciable cost ................................................................. $36,000 Years of useful life ............................................................. ÷ 4 Annual depreciation ................................................... $ 9,000 Depreciation Expense ......................................... 9,000 Accumulated Depreciation ......................... 9,000 (b) (1) Recorded cost ..................................................................... $100,000 Less: Salvage value .......................................................... 8,000
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Depreciable cost ................................................................. $92,000 Years of useful life ............................................................. ÷ 4 Annual depreciation ................................................... $ 23,000 (2) Year Book Value at Beginning of Year DDB Rate Annual Depreciation Expense Accumulated Depreciation
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