E10-5, E10-6 - 2010 depreciation = $21,600 X 3/12 =...

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EXERCISE 10-5 (a) Depreciation cost per unit is $1.60 per mile [($168,000 – $8,000) ÷ 100,000]. (b) Computation End of Year Year Units of Activity X Depreciation Cost/Unit = Annual Depreciation Expense Accumulated Depreciation Book Value 2010 2011 2012 2013 26,000 32,000 25,000 17,000 $1.60 1.60 1.60 1.60 $41,600 51,200 40,000 27,200 $ 41,600 92,800 132,800 160,000 $126,400 75,200 35,200 8,000 EXERCISE 10-6 (a) Straight-line method: = $21,600 per year.
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Unformatted text preview: 2010 depreciation = $21,600 X 3/12 = $5,400 . (b) Units-of-activity method: = $10.80 per hour. 2010 depreciation = 1,700 hours X $10.80 = $18,360 . (c) Declining-balance method: 2010 depreciation = $120,000 X 40% X 3/12 = $12,000 . Book value January 1, 2011 = $120,000 – $12,000 = $108,000. 2011 depreciation = $108,000 X 40% = $43,200 ....
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