# Ch11 - Homework Ch.11 Q1 Foster Corporation purchased a new...

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Homework – Ch.11 Q1 Foster Corporation purchased a new machine for its assembly process on August 1, 2007. The cost of this machine was \$235,800. The company estimated that the machine would have a trade-in value of \$25,800 at the end of its service life. Its life is estimated at 10 years, and its working hours are estimated at 42,000 hours. Year-end is December 31. Instructions Compute the depreciation expense under the following methods. Each of the following should be considered unrelated. (a)  Straight-line depreciation for 2007. (b)  Activity method for 2007, assuming that machine usage was 800 hours. (c)  Sum-of-the-years’-digits for 2008. (d)  Double-declining balance for 2008. Q2 Instructions Complete the following table for the year ended December 31, 2011. Description Date of Purchased Cost Salvage Value Life in Years Depreciatio n Method Accumulated Depreciation to 12/31/10 Depreciatio n for 2011 Machine A 3/1/2009 220,000 (a) 10 SL 38,500 (b) Machine B 9/1/2008 (c)

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Ch11 - Homework Ch.11 Q1 Foster Corporation purchased a new...

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