Chp 11 12th ed Exercises and Problems Solutions

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

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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
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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
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This note was uploaded on 11/30/2010 for the course BUSINESS 4230 taught by Professor Dee during the Spring '10 term at Community College of Denver.

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

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