Using the sum of the years digits method depreciation

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46. Using the sum-of-the years'-digits method, depreciation for 2014 and book value at December 31, 2014, would be A. $13,500 and $13,500. B. $13,500 and $8,500. C. $12,000 and $17,000. D. $12,000 and $12,000. Depreciation in 2014 = ($45,000 - 5,000) x 3/10 = $12,000 Book value, 12/31/2014 = $45,000 - 16,000 - 12,000 = $17,000 AACSB: Analytic
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AICPA FN: Measurement Blooms: Apply Difficulty: 3 Hard Learning Objective: 11-02 Determine periodic depreciation using both time-based and activity-based methods. Spiceland - Chapter 11 #46 Topic: Determine periodic depreciation using both time-based and activity-based methods On September 30, 2013, Bricker Enterprises purchased a machine for $200,000. The estimated service life is 10 years with a $20,000 residual value. Bricker records partial-year depreciation based on the number of months in service. Spiceland - Chapter 11 47. Depreciation for 2013, using the straight-line method is: ($200,000 - 20,000) ÷10 x 3/12 = $4,500 AACSB: Analytic AICPA FN: Measurement Blooms: Apply Difficulty: 2 Medium Learning Objective: 11-02 Determine periodic depreciation using both time-based and activity-based methods. Spiceland - Chapter 11 #47 Topic: Determine periodic depreciation using both time-based and activity-based methods
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48. Depreciation for 2013, using double-declining balance, would be: $200,000 x 20% x 3/12 = $10,000 AACSB: Analytic AICPA FN: Measurement Blooms: Apply Difficulty: 2 Medium Learning Objective: 11-02 Determine periodic depreciation using both time-based and activity-based methods. Spiceland - Chapter 11 #48 Topic: Determine periodic depreciation using both time-based and activity-based methods 49. Depreciation for 2014, using double-declining balance, would be: Depreciation for 2014 = [$200,000 - ($200,000 x 20% x 3/12] x 20% = $38,000 AACSB: Analytic AICPA FN: Measurement Blooms: Apply Difficulty: 3 Hard Learning Objective: 11-02 Determine periodic depreciation using both time-based and activity-based methods. Spiceland - Chapter 11 #49 Topic: Determine periodic depreciation using both time-based and activity-based methods
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50. Depreciation (to the nearest dollar) for 2013, using sum-of-the-years' digits, would be: A. $9,091. B. $24,545. C. $27,273. D. $8,182. ($200,000 - 20,000) x 10/55 x 3/12 = $8,182 AACSB: Analytic AICPA FN: Measurement Blooms: Apply Difficulty: 3 Hard Learning Objective: 11-02 Determine periodic depreciation using both time-based and activity-based methods. Spiceland - Chapter 11 #50 Topic: Determine periodic depreciation using both time-based and activity-based methods 51. Depreciation (to the nearest dollar) for 2014, using sum-of-the-years' digits, would be: ($200,000 - 20,000) x 10/55 x 9/12 + ($200,000 - 20,000) x 9/55 x 3/12 = $31,909 AACSB: Analytic AICPA FN: Measurement Blooms: Apply Difficulty: 3 Hard Learning Objective: 11-02 Determine periodic depreciation using both time-based and activity-based methods. Spiceland - Chapter 11 #51
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Topic: Determine periodic depreciation using both time-based and activity-based methods
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