{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Chp 11 12th ed Exercises and Problems Solutions

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

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

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

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

View Full Document
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
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

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

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

### What students are saying

• 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.

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

• 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.

Dana University of Pennsylvania ‘17, Course Hero Intern

• 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.

Jill Tulane University ‘16, Course Hero Intern