Ch.+8+Problem+Solutions

Ch.+8+Problem+Solutions - Problem 8-1B (50 minutes) Part 1...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Problem 8-1B (50 minutes) Part 1 Estimated Market Value Percent of Total Apportioned Cost Building . ......................... $ 469,200 51% $ 474,300 Land . ............................... 303,600 33 306,900 Land improvements . ..... 36,800 4 37,200 Trucks . ............................ 110,400 12 111,600 Total . ............................... $ 920,000 100 % $ 930,000 2009 Jan. 1 Buildings . .................................................... 474,300 Land . ............................................................ 306,900 Land Improvements . .................................. 37,200 Trucks . ......................................................... 111,600 Cash . ...................................................... 930,000 To record asset purchases. Part 2 Year 2009 straight-line depreciation on building [($474,300 - $30,000) / 15 years] = $29,620 Part 3 Year 2009 double-declining-balance depreciation on land improvements (100% / 5 years) x 2 = 40% rate $37,200 x 40% = $14,880 Part 4 Accelerated depreciation does not increase the total amount of taxes paid
Background image of page 1

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

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 01/22/2011 for the course MGT 11A taught by Professor Armstrong during the Fall '08 term at UC Davis.

Page1 / 3

Ch.+8+Problem+Solutions - Problem 8-1B (50 minutes) Part 1...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online