Assignment-5 - Assignment 5 Due date: 11 September 2011, S...

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Assignment 5 Due date: 11 September 2011, Sunday 1. The accountant for Becker Company wants to develop a balance sheet as of December 31 2007. The review of asset record has revealed the following information: a. Asset A was purchased on July 1 2005 for $ 40,000 and has been depreciated on straight line basis using an estimated life of 6 years and a residual value of $ 4,000. b. Asset B was purchased on January 1 2005 for $ 66,000. The straight lie method has been used for depreciation purposes. Originally the estimated life of the asset was projected to be six years with residual value of $ 6,000; however at the beginning of 2007, the accountant learned that the remaining life of the asset was only 3 years with residual value of $2,000. c. Asset C was purchased on January 1 2006 for $50,000. The double declining method has been used for depreciation purposes with a four year life and residual estimate of $5,000. Assume that these assets represent pieces of equipment. Calculate the acquisition cost,
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Assignment-5 - Assignment 5 Due date: 11 September 2011, S...

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