BProblemsChapter 7 - Problem 7-1 With units-of-production...

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Problem 7-1 With units-of-production depreciation, one finds the cost of one production unit, and then multiplies this by the units used in a year to determine the year’s depreciation: 08 $. 000 , 525 , 3 $18,000 - $300,000 unit one of Cost = = Years Units x $.08 = Units of Production Depreciation SYD Charge 1 930,000 x $.08 = $ 74,400 $80,571 (6/21 x $282,000) 2 800,000 x .08 = 64,000 67,143 (5/21 x 282,000) 3 580,000 x .08 = 46,400 53,714 (4/21 x 282,000) 4 500,000 x .08 = 40,000 40,286 (3/21 x 282,000) 5 415,000 x .08 = 33,200 26,857 (2/21 x 282,000) 6 300,000 x .08 = 24,000 13,429 (1/21 x 282,000) 3,525,000 $282,000 282,000 Problem 7-4 (1) Land ............................................................................................................................................................................... 80,600 Cash ......................................................................................................................................................................... 80,600 (2) Building ......................................................................................................................................................................... 138,000 Common Stock ........................................................................................................................................................ 90,000 Notes Payable .......................................................................................................................................................... 16,000 Cash ......................................................................................................................................................................... 32,000 (3) Desks and Chairs (80% x $8,700) ..................................................................................................................................
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