# Additional - Try Exercises 11-1,4,11,14,16,18,21 EXERCISE 11-1(a Straight-line method depreciation for each of Years 1 through 3 = \$518,000 \$50,000

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Try Exercises 11-1,4,11,14,16,18,21 EXERCISE 11-1 (a) Straight-line method depreciation for each of Years 1 through 3 = \$518,000 – \$50,000 = \$39,000 12 (b) Sum-of-the-Years’-Digits = 12 X 13 = 78 2 12/78 X (\$518,000 – \$50,000) = \$72,000 depreciation Year 1 11/78 X (\$518,000 – \$50,000) = \$66,000 depreciation Year 2 10/78 X (\$518,000 – \$50,000) = \$60,000 depreciation Year 3 (c) Double-Declining-Balance method depreciation rate. 100% X 2 = 16.67% 12 \$518,000 X 16.67% = \$86,351 depreciation Year 1 (\$518,000 – \$86,351) X 16.67% = \$71,956 depreciation Year 2 (\$518,000 – \$86,351 – \$71,956) X 16.67% = \$59,961 depreciation Year 3

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EXERCISE 11-4 (a) \$279,000 – \$15,000 = \$264,000; \$264,000 ÷ 10 yrs. = \$26,400 (b) \$264,000 ÷ 240,000 units = \$1.10; 25,500 units X \$1.10 = \$28,050 (c) \$264,000 ÷ 25,000 hours = \$10.56 per hr.; 2,650 hrs. X \$10.56 = \$27,984 (d) 10 + 9 + 8 + 7 + 6 + 5 + 4 + 3 + 2 + 1 = 55 OR n(n + 1) = 10(11) = 55 2 2 10 X \$264,000 X 1/3 = \$16,000 55 9 X \$264,000 X 2/3 = 28,800 55 Total for 2011 \$44,800 (e) \$279,000 X 20% X 1/3 = \$18,600 [\$279,000 – (\$279,000 X 20%)] X 20% X 2/3 = 29,760 Total for 2011 \$48,360 [May also be computed as 20% of (\$279,000 – 2/3 of 20% of \$279,000)]
EXERCISE 11-11 (a) No correcting entry is necessary because changes in estimate are handled in the current and prospective periods. (b)

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## This note was uploaded on 04/29/2011 for the course ACCT 3001 taught by Professor Erickson during the Spring '10 term at University of Minnesota Duluth.

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Additional - Try Exercises 11-1,4,11,14,16,18,21 EXERCISE 11-1(a Straight-line method depreciation for each of Years 1 through 3 = \$518,000 \$50,000

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