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 machine’s life plus 3/12 of 3 rd year of machine’s 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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