Wk5 D1 - E10-15(10-15 min Allocation of cost to each lot...

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E10-15 (10-15 min.) Allocation of cost to each lot: Lot Appraised Value Proportion 1 $50,000 0.278 2 60,000 0.333 3 70,000 0.389 Totals $150,000 1.000 Journal Date Accounts and Explanations Land purchased: Lot 1 Lot 2 Lot 3 Cash
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Allocated Cost x $150,000 = $41,700 x $150,000 = 49,950 x $150,000 = 58,350 $150,000 Post Ref. Debit Credit 41,667 50,000 58,333 150,000
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P10-31A (30-40 min.) Req. 1 Straight-Line Depreciatio Depreciation for the Date 1/2/06 $70,000 12/31/06 1/6 $55,800 12/31/07 1/6 $55,800 12/31/08 1/6 $55,800 12/31/09 1/6 $55,800 12/31/10 1/6 $55,800 12/31/11 1/6 $55,800 Units-of-Production Depreci Depreciation for the Date 1/2/06 $70,000 12/31/06 $0.588 18,000 12/31/07 $0.588 18,000 12/31/08 $0.588 18,000 12/31/09 $0.588 18,000 12/31/10 $0.588 18,000 12/31/11 $0.588 18,000 Double-Declining-Balance Depr Depreciation for the Date Asset Cost Depr. Rate Depreciable Cost Deprec Expe Asset Cost Depr. Per Mile Number of Miles Deprec Expe Asset Cost DDB Rate Asset Book Value Deprec Expe
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1/2/06 $70,000 12/31/06 1/6*2 $55,800 12/31/07 1/6*2 51,400 12/31/08 1/6*2 34,267 12/31/09 1/6*2 22,844 12/31/10 1/6*2 15,230 12/31/11 1/6*2 Req. 2 Answer: The Declining Balance Depreciation Schedule is the bet accumulated depreciation looks better for tax purposes.
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on Schedule e Year $70,000 $9,300 $9,300 60,200 $9,300 $18,600 51,400 $9,300 $27,900 42,100 $9,300 $37,200 32,800 $9,300 $46,500 23,500 $9,300 $55,800 14,200
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