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Unformatted text preview: (a) Compute depreciation expense for 2011 and 2012 using (1) the straight-line method, 2011 3500 2012 3500 (2) theunits-of-activity method, and 2011 4200 2012 3360 (3) the double-declining balance method. 2011 7500 2012 5625 (b) Assume that Brainiac uses the straight-line method. (1) Prepare the journal entry to record 2011 depreciation. Depreciation expenses DR. 3500 Accumulated depreciation truck CR. 3500 (2) Show how the truck would be reported in the December 31, 2011, balance sheet. Fixed Assets Truck at cost 30000 less Acc Depreciation-3500 Net value of truck 26500 a All the cost incurred on acquiring the ploant assets to make it useable are to be included in acquisition cost of plant assets, such as purchase price, frieight in, insurance in transit. Any cost after its use and which does not increase the productivity of the assets are not the part of acquisition cost, such as insurance of building for one year, etc....
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This note was uploaded on 02/25/2012 for the course ECON ECON taught by Professor Animesh during the Spring '12 term at DeVry Phoenix.
- Spring '12