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10 - Class Exercises

# 10 - Class Exercises - ACC211 NVCC-AN Mitchell Chapter 10...

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ACC211 / NVCC-AN Mitchell Chapter 10 Class Exercises 1. The following expenditures were incurred by Nationals Company in purchasing land: cash price \$69,090, accrued taxes \$2,492, attorneys' fees \$2,556, real estate broker's commission \$2,064, and clearing and grading \$3,447. What is the cost of the land? 2. Braves Company acquires a delivery truck at a cost of \$55,600. The truck is expected to have a salvage value of \$3,700 at the end of its 4-year useful life. Compute annual depreciation for the first and second years using the straight-line method. 3. Lightning Taxi Service uses the units-of-activity method in computing depreciation on its taxicabs. Each cab is expected to be driven 155,160 miles. Taxi no. 10 cost \$39,920 and is expected to have a salvage value of \$310. Taxi no. 10 is driven 30,860 miles in year 1 and 20,020 miles in year 2. Compute the depreciation for each year. (Round depreciation cost per unit to 2 decimal places, e.g. 10.50. Use rounded numbers for future calculations. Round final answers to 0 decimal places, e.g. 125.) 4. Marlins Company sells office equipment on September 30, 2010, for \$20,258 cash. The office equipment originally cost \$72,059
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