Chapter_9

Chapter_9 - Student Name Class Problem 09-02 SWANSON HILLER...

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Student Name: Class: Problem 09-02 SWANSON & HILLER, INC. Depreciation Schedules a.(1) Straight-Line Schedule Depreciation Accumulated Book Year Expense Depreciation Value 2006 \$10,000 \$10,000 \$98,000 «- Correct! 2007 \$20,000 30,000 78,000 «- Correct! 2008 \$20,000 50,000 58,000 «- Correct! 2009 \$20,000 70,000 38,000 «- Correct! 2010 \$20,000 90,000 18,000 «- Correct! 2011 \$10,000 100,000 8,000 «- Correct! a.(2) 200% Declining-Balance Schedule Depreciation Accumulated Book Year Expense Depreciation Value 2006 \$21,600 \$21,600 \$86,400 «- Correct! 2007 \$34,560 56,160 51,840 «- Correct! 2008 \$20,736 76,896 31,104 «- Correct! 2009 \$12,442 89,338 18,662 «- Correct! 2010 \$7,465 96,803 11,197 «- Correct! 2011 \$3,197 100,000 8,000 «- Correct! a.(3) 150% Declining-Balance Schedule Depreciation Accumulated Book Year Expense Depreciation Value 2006 \$16,200 \$16,200 \$91,800 «- Correct! 2007 \$27,540 43,740 64,260 «- Correct! 2008 \$19,278 63,018 44,982 «- Correct! 2009 \$13,495 76,513 31,487 «- Correct! *2010 \$11,744 88,256 19,744 «- Try again! *2011 \$11,744 100,000 8,000 «- Try again! *Switch to straight-line b. Which of the three methods is most common for financial reporting purposes? Explain. SWANSON & HILLER, INC. The straight-line method of depreciation is most common for financial statementsas it causes the company to appear more profitable.

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Student Name: Class: Problem 09-02 Computation of Gain or Loss upon Disposal c.(1) Straight-Line Cash proceeds \$28,000
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