4-14-11 Solution

# 4-14-11 Solution - EXERCISE 22-6 (a) Depreciation to date...

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Unformatted text preview: EXERCISE 22-6 (a) Depreciation to date on equipment Sum-of-the-years’-digits depreciation 2007 (5/15 X \$450,000) \$150,000 2008 (4/15 X \$450,000) 120,000 2009 (3/15 X \$450,000) 90,000 \$360,000 Cost of equipment..................................................... \$465,000 Depreciation to date................................................... 360,000 Book value (December 31, 2009).............................. \$105,000 Book value – Salvage value = Depreciable cost \$105,000 – \$15,000 = \$90,000 Depreciation for 2010: \$90,000/2 = \$45,000 Depreciation Expense........................................................................ 45,000 Accumulated Depreciation—Equipment................................. 45,000 (b) Depreciation to date on building \$780,000/30 years = \$26,000 per year \$26,000 X 3 = \$78,000 depreciation to date Cost of building......................................................... \$780,000 Depreciation to date................................................... 78,000 Book value (December 31, 2009).............................. \$702,000 Depreciation for 2010: \$702,000/(40 – 3) = \$18,973 Depreciation Expense........................................................................Depreciation Expense....
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## This note was uploaded on 03/03/2012 for the course MGMT 351 taught by Professor Staff during the Spring '08 term at Purdue.

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4-14-11 Solution - EXERCISE 22-6 (a) Depreciation to date...

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