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# HW#8 - B Depreciation Expense E-SE 15,313 Accumulated...

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Homework #8 Anthony Marsala ACC201 Sec. 24 A. Machine #1 Computation DepreciationAccumulated Net Book Year Expense Depreciation Value (Yr. End) 2010 (80k-5k)/5yr 15,000 15,000 65,000 2011 80,000-30,000 15,000 30,000 50,000 2012 80,000-45,000 15,000 45,000 35,000 2013 80,000-60,000 15,000 60,000 20,000 2014 80,000-75,000 15,000 75,000 5,000 Mach #2 Net Book Computation DepreciationAccumulated Net Book Year  Value (Yr. Beg) Expense Depreciation Value (Yr. End) 2010 120,000 120,000 x 0.4 48,000 48,000 72,000 2011 72,000 72,000 x 0.4 28,800 76,800 43,200 2012 43,200 43,200 x 0.4 17,280 94,080 25,920 2013 25,920 25,920 x 0.4 5920* 100,000 20,000 2014 Mach #3 Units of Actv. Computation DepreciationAccumulated Net Book Year Expected Expense Depreciation Value (Yr. End) 2010 70,000 70,000 x 0.219 15,313 15,313 59,087 2011 50,000 50,000 x 0.219 10,937 26,250 48,150 2012 80,000 80,000 x 0.219 17,500 43,750 30,650 2013 70,000 70,000 x 0.219 15,313 59,063 15,337 2014 50,000 50,000 x 0.219 10,937 70,000 4,400 * = Adjusted Annual Depreciation Expense
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Unformatted text preview: B. Depreciation Expense (+E, -SE) 15,313 Accumulated Depreciation (+XA, -A) 15,313 Income Statement Balance Sheet Revenue - Expense = NI Assets = Liabilities + S.E. NE I D D NE D C. Cash (+A) 50,000 Accumulated Depreciation (-XA, +A) 60,000 Equipment (-A) 80,000 Gain on Sale of Equipment (+R, +SE) 30,000 D. I would recommend that Jupitor Corp. use the Straight Line depreciation method because it will depreciate the equipment at the slowest rate. Th follows the least and latest rule because it will allow for the largest possible depreciation expense when the firm becomes profitable and al it to receive the most tax breaks....
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