Solutions for chapter 10

Solutions for chapter 10 - PROBLEM 10-4B Year Depreciation...

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Unformatted text preview: PROBLEM 10-4B Year Depreciation Expense Accumulated Depreciation 2000 2001 2002 2003 2004 2005 2006 (b) $6,000 (a) 6,000 (b) 4,800 (b) 4,800 4,800 (b) 5,600 (c) 5,600 $ 6,000 12,000 16,800 21,600 26,400 32,000 37,600 (a) years 6 $4,000 $40,000 = $6,000 (b) life useful Remaining value Salvage value Book = years 5 $4,000 $28,000 = $4,800 (c) years 2 $2,400 $13,600 = $5,600 PROBLEM 10-5B (a) Apr. 1 Land................................................... 2,200,000 Cash........................................... 2,200,000 May 1 Depreciation Expense...................... 18,000 Accumulated Depreciation Equipment............................. 18,000 ($540,000 X 1/10 X 4/12) 1 Cash................................................... 360,000 Accumulated Depreciation Equipment..................................... 234,000 Equipment................................. 540,000 Gain on Disposal...................... 54,000 Cost $540,000 Accum. depreciation equipment 234,000 [($540,000 X 1/10 X 4) + $18,000] 0000,000 Book value 306,000 Cash proceeds 360,000 Gain on disposal $ 54,000 June 1 Cash................................................... 1,800,000 Land........................................... 500,000 Gain on Disposal...................... 1,300,000 July 1 Equipment......................................... 1,400,000 Cash...........................................Cash....
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This note was uploaded on 05/21/2011 for the course ACY 1111 taught by Professor Km during the Spring '10 term at CUHK.

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Solutions for chapter 10 - PROBLEM 10-4B Year Depreciation...

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