3101 Homework Solutions ch.11

3101 Homework Solutions ch.11 - Acct 3101 Intermed Acctg 1...

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Acct 3101 Intermed. Acctg 1 Homework Solutions Text: Kieso et al. 13 th ed. Chapter 11 EXERCISE 11-9 (a) Asset Cost Estimated Salvage Depreciable Cost Estimated Life Depreciation per Year A $ 40,500 $ 5,500 $ 35,000 10 $ 3,500 B 33,600 4,800 28,800 9 3,200 C 36,000 3,600 32,400 8 4,050 D 19,000 1,500 17,500 7 2,500 E 23,500 2,500 21,000 6 3,500 $152,600 $17,900 $134,700 $16,750 Composite life = $134,700 ÷ $16,750, or 8.04 years Composite rate = $16,750 ÷ $152,600, or approximately 11.0% (b) Depreciation Expense—Plant Assets. ....................... 16,750 Accumulated Depreciation—Plant Assets. ............................................................. 16,750 (c) Cash . ........................................................................... 5,000 Accumulated Depreciation—Plant Assets. ............... 14,000 Plant Assets. ...................................................... 19,000 File: 3101 homework solutions ch.11 Page 1
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EXERCISE 11-11 (a) No correcting entry is necessary because changes in estimate are handled in the current and prospective periods. (b) Revised annual charge Book value as of 1/1/2011 [$52,000 – ($6,000 X 5)] = $22,000 Remaining useful life, 5 years (10 years – 5 years)
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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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3101 Homework Solutions ch.11 - Acct 3101 Intermed Acctg 1...

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