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Selected Answers to Homework for Chapter 9

Selected Answers to Homework for Chapter 9 - Chapter 9...

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Selected Answers to Homework Assignment                                 Chapter 9 BRIEF EXERCISE 9-3 The depreciable cost is $27,000 ($31,000 – $4,000). With a 5-year useful life, annual depreciation is $5,400 ($27,000 ÷ 5). Under the straight-line method, depreciation is the same each year. Thus, depreciation is $5,400 for both the first and second years. BRIEF EXERCISE 9-10 (a) Amortization Expense—Patent ($150,000 ÷ 5) ........ 30,000 Patent .................................................................. 30,000 (b) Intangible Assets Patent (Net of $30,000 of amortization) ........... $120,000 EXERCISE 9-3 (a) Cost of land Cash paid ..................................................................... $80,000 Net cost of removing warehouse ($8,200 – $1,700) .... 6,500 Attorney’s fee .............................................................. 1,500 Real estate broker’s fee ............................................. 5,000 Total ...................................................................... $93,000 (b) The architect’s fee ($9,100) should be debited to the building account. The cost of the driveways and parking lot ($14,000) should be debited to Land Improvements.
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EXERCISE 9-7 (a) Accumulated Depreciation—Delivery Equipment .... 20,000 Loss on Disposal ....................................................... 30,000 Delivery Equipment ........................................... 50,000 (b) Cash ............................................................................ 37,000 Accumulated Depreciation—Delivery Equipment ............................................................. 20,000 Delivery Equipment ........................................... 50,000 Gain on Disposal ................................................ 7,000 Jan. 1 Accumulated Depreciation—Machinery
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