# 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
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
Topic: Determine periodic depreciation using both time-based and activity-based methods

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