Chapter 10 E11-6 ACC

Chapter 10 E11-6 ACC - $64,000 $16,000 $48,000 2 7/36 X...

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EXERCISE 11-6 (a) 2010 Straight-line $304,000 – $16,000 = $36,000/year 8 3 months—Depreciation ($36,000 X 3/12) = $9,000 (b) 2010 Output $304,000 – $16,000 = $7.20/output unit 40,000 1,000 units X $7.20 = $7,200 (c) 2010 Working hours $304,000 – $16,000 = $14.40/hour 20,000 525 hours X $14.40 = $7,560 (d) 8 + 7 + 6 + 5 + 4 + 3 + 2 + 1 = 36 OR n(n + 1) = 8(9) = 36 2 2 Allocated to Sum-of-the-years’-digits Total 2010 2011 2012 Year 1 8/36 X $288,000 =
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Unformatted text preview: $64,000 $16,000 $48,000 2 7/36 X $288,000 = $56,000 14,000 $42,000 3 6/36 X $288,000 = $48,000 12,000 $16,000 $62,000 $54,000 2012: $54,000 = (9/12 of 2 nd year of machines life plus 3/12 of 3 rd year of machines life) (e) Double-declining-balance 2011: 1/8 X 2 = 25%. 2010: 25% X $304,000 X 3/12 = $19,000 2011: 25% X ($304,000 $19,000) = $71,250...
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