Om it the signinyourresponse annualdeprec iation 12000

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Unformatted text preview: c h of the firs t two y ears us ing the following as s umptions : 25­y ear es timated us eful life, with a res idual v alue of $100,000. a. Calc ulate the annual deprec iation for the firs t two y ears that Twin­Cities owned the building. (Om it the "$" sign in your response.) Annual deprec iation $ 12,000 b. Calc ulate the book v alue of the building at the end of the s ec ond y ear. (Om it the "$" sign in your response.) Book v alue $ 376,000 Explanation: a. Deprec iation ex pens e for eac h of the firs t two y ears : ($400,000 – $100,000)/25 y ears = $12,000 b. Book v alue at the end of Year 2: $400,000 – ($12,000 × 2) = $376,000 e z to.mhe c loud.mc gr a w- hill.c om/hm_a c c ounting.tpx? todo= pr intvie w 4/6 11/18/13 5. Assignme nt Pr int Vie w awar d: 2.86 out of 20.00 points Equipment c os ting $76,000 was purc has ed by Spenc e, Inc ., at the beginning of the c urrent y ear. The c ompany will deprec iate the equipment by the dec lining­balanc e method, but it has not determined whether the rate will be at 150 perc ent or 200 perc ent of the s traight­line rate. The es timated us eful life of the equipment is eight y ears . Prepare a c omparis on of the two alternativ e rates for management for the firs t two y ears Spenc e owns the equipment. (Round your answers to the nearest dollar am ount. Om it the "$" sign in your response.) Double­dec lining balanc e deprec iation: 150% dec lining­balanc e deprec iation: n/r Year 1 $ 19,000 $ n/r Year 2 $ n/r $ n/r $ n/r $ n/r Worksheet Learning Objective: 09­03 Compute depreciation by the straight­line and declining­balance methods. Equipment c os ting $76,000 was purc has ed by Spenc e, Inc ., at the beginning of the c urrent y ear. The c ompany will deprec iate the equipment by the dec lining­balanc e method, but it has not determined whether the rate will be at 150 perc ent or 200 perc ent of the s traight­line rate. The es timated us eful life of the equipment is eight y ears . Prepare a c omparis on of the two alternativ e rates for management for the firs t two y ears Spenc e owns the equipment. (Round your answers to the nearest dollar am ount. Om it the "$" sign in your response.) Double­dec lining balanc e deprec iation: 150% dec lining­balanc e deprec iation: Ex c es s of double dec lining­balanc e ov er 150% dec lining­balanc e $ $ Year 1 19,000 14,250 $ 4,750 Year 2 14,250 11,578 $ 2,672 $ $ Explanation: Year 1 D...
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This document was uploaded on 03/03/2014 for the course MGMT ACCOU 2300 at Rensselaer Polytechnic Institute.

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