{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Chp 11 12th ed Exercises and Problems Solutions

Chp 11 12th ed Exercises and Problems Solutions - EXERCISE...

Info icon This preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
EXERCISE 11-1 (15–20 minutes) (a) Straight-line method depreciation for each of Years 1 through 3 = $469,000 – $40,000 = $35,750 12 (b) Sum-of-the-Years’-Digits = 12 X 13 = 78 2 12/78 X ($469,000 – $40,000) = $66,000 depreciation Year 1 11/78 X ($469,000 – $40,000) = $60,500 depreciation Year 2 10/78 X ($469,000 – $40,000) = $55,000 depreciation Year 3 (c) Double-Declining Balance method depreciation rate. 100% X 2 = 16.67% 12 $469,000 X 16.67% = $78,182 depreciation Year 1 ($469,000 – $78,182) X 16.67% = $65,149 depreciation Year 2 ($469,000 – $78,182 – $65,149) X 16.67% = $54,289 depreciation Year 3 EXERCISE 11-5 (20–25 minutes) (a) ($117,900 – $12,900) = $21,000/yr. = $21,000 X 5/12 = $8,750 5 2007 Depreciation—Straight line = $8,750 (b) ($117,900 – $12,900) = $5.00/hr. 21,000
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
2007 Depreciation—Machine Usage = 800 X $5.00 = $4,000 (c) Machine Allocated to Year Total 2007 2008 1 5/15 X $105,000 = $35,000 $14,583* $20,417** 2 4/15 X $105,000 = $28,000 ______ 11,667 *** $14,583 $32,084 * $35,000 X 5/12 = $14,583 ** $35,000 X 7/12 = $20,417 *** $28,000 X 5/12 = $11,667 2008 Depreciation—Sum-of-the-Years’-Digits = $32,084 (d) 2007 40% X ($117,900) X 5/12 = $19,650 2008 40% X ($117,900 – $19,650) = $39,300 OR 1 st full year (40% X $117,900) = $47,160 2 nd full year [40% X ($117,900 – $47,160)] = $28,296 2007 Depreciation = 5/12 X $47,160 = $19,650 2008 Depreciation = 7/12 X $47,160 = $27,510 5/12 X $28,296 = 11,790 $39,300
Image of page 2
EXERCISE 11-9 (15–20 minutes) (a) Asset Cost Estimated Salvage Depreciable Cost Estimated Life Depreciation per Year A $ 40,500 $ 5,500 $ 35,000 10 $ 3,500 B 33,600 4,800 28,800 9 3,200 C 36,000 3,600
Image of page 3

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern