5 2 150 dec liningbalanc erate125 15 1250 2500 1875

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Unformatted text preview: ouble­dec lining balanc e deprec iation: $76,000 × 25% 150% dec lining­balanc e deprec iation: $76,000 × 18.75% Ex c es s of double dec lining­balanc e ov er 150% dec lining­balanc e $ 19,000 $ 14,250 $ 4,750 Dec lining­balanc e rates are determined as follows : Straight­line rate: 100% /8 y ears Double dec lining­balanc e rate: 12.5 × 2 150% dec lining­balanc e rate: 12.5 × 1.5 12.50 % 25.00 % 18.75 % Year 2 Double­dec lining balanc e deprec iation: ($76,000 – $19,000)× 25% 150% dec lining­balanc e deprec iation: ($76,000 − $14,250)× 18.75% Ex c es s of double dec lining­balanc e ov er 150% dec lining­balanc e $ 14,250 $ 11,578 $ 2,672 e z to.mhe c loud.mc gr a w- hill.c om/hm_a c c ounting.tpx? todo= pr intvie w 5/6 11/18/13 6. Assignme nt Pr int Vie w awar d: 15 out of 15.00 points Alex ander Company purc has ed a piec e of equipment for $12,000 and deprec iated it for three y ears ov er a fiv e­y ear es timated life with an ex pec ted res idual v alue at the end of fiv e y ears of $2,000. At the end of the third y ear, Alex dec ided to upgrade to equipment with inc reas ed c apac ity and s old the original piec e of equipment for $7,200. Calc ulate the gain or los s on the dis pos al at the end of the third y ear. (Input the am ount as positive value. Om it the "$" sign in your response.) Gain on s ale by $ 1,200 Worksheet Learning Objective: 09­03 Compute depreciation by the straight­line and declining­balance methods. Learning Objective: 09­05 Account for the disposal of plant assets. Alex ander Company purc has ed a piec e of equipment for $12,000 and deprec iated it for three y ears ov er a fiv e­y ear es timated life with an ex pec ted res idual v alue at the end of fiv e y ears of $2,000. At the end of the third y ear, Alex dec ided to upgrade to equipment with inc reas ed c apac ity and s old the original piec e of equipment for $7,200. Calc ulate the gain or los s on the dis pos al at the end of the third y ear. (Input the am ount as positive value. Om it the "$" sign in your response.) Gain on s ale by $ 1,200 Explanation: Selling pric e of equipment Book v alue of equipment s old: Cos t Les s : ac c umulated deprec iation* Gain on s ale $ 7,200 $ 12,000 6,000 6,000 $ 1,200 *[($12,000 − $2,000)/5 y ears ] × 3 y ears = $6,000 e z to.mhe c loud.mc gr a w- hill.c om/hm_a c c ounting.tpx? todo= pr intvie w 6/6...
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