Chapter 9 Solutions - PRACTICE EXERCISES PE 91A May 27...

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Unformatted text preview: PRACTICE EXERCISES PE 91A May 27 Accumulated DepreciationDelivery Van......... 950 Cash.................................................................. 950 27 Delivery Van.......................................................... 450 Cash.................................................................. 450 PE 91B Oct. 9 Delivery Truck....................................................... 1,150 Cash.................................................................. 1,150 9 Repairs and Maintenance Expense.................... 40 Cash.................................................................. 40 PE 92A a. $410,000 ($485,000 $75,000) b. 4% = (1/25) c. $16,400 ($410,000 4%), or ($410,000/25 years) PE 92B a. $120,000 ($125,000 $5,000) b. 12.5% = (1/8) c. $15,000 ($120,000 12.5%), or ($120,000/8 years) PE 93A a. $99,000 ($134,000 $35,000) b. $0.33 per mile ($99,000/300,000 miles) c. $17,160 (52,000 miles $0.33) PE 93B a. $80,000 ($95,000 $15,000) b. $2.00 per hour ($80,000/40,000 hours) c. $10,200 (5,100 hours $2.00) PE 94A a. 5% = [(1/40) 2] b. $32,500 ($650,000 5%) PE 94B a. 40% = [(1/5) 2] b. $58,000 ($145,000 40%) PE 95A a. $12,000 [($250,000 $34,000)/18] b. $130,000 [$250,000 ($12,000 10)] c. $15,500 [($130,000 $6,000)/8] PE 95B a. $8,125 [($80,000 $15,000)/8] b. $47,500 [$80,000 ($8,125 4)] c. $7,500 [($47,500 $10,000)/5] PE 96A a. $81,000 = $324,000 [(1/8) 2)] = $324,000 25% b. $17,750 gain, computed as follows: Cost...................................................... $324,000 Less: First-year depreciation............ (81,000) Second-year depreciation....... (60,750 ) [($324,000 $81,000) 25%] Book value at end of second year.... $182,250 Gain on sale ($200,000 $182,250) = $17,750 c. Cash.................................................................................. 200,000 Accumulated DepreciationEquipment....................... 141,750 Equipment................................................................... 324,000 Gain on Sale of Equipment....................................... 17,750 PE 96B a. $9,500 [($160,000 $17,500)/15] b. $13,000 loss {$90,000 [$160,000 ($9,500 6)]} c. Cash.................................................................................. 90,000 Accumulated DepreciationEquipment....................... 57,000 Loss on Sale of Equipment............................................ 13,000 Equipment................................................................... 160,000 PE 97A a. $0.60 per ton = $120,000,000/200,000,000 tons b. $18,693,000 = (31,155,000 tons $0.60 per ton) c. Dec. 31 Depletion Expense......................................... 18,693,000 Accumulated Depletion........................... 18,693,000 Depletion of mineral deposit.Depletion of mineral deposit....
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Chapter 9 Solutions - PRACTICE EXERCISES PE 91A May 27...

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