# Spiceland using the straight line method depreciation

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expected to have a four-year life, with a residual value of \$5,000 at the end of four years. Spiceland - Chapter 11 41. Using the straight-line method, depreciation for 2013 and book value at December 31, 2013, would be: A. \$10,000 and \$30,000. B. \$11,250 and \$28,750. C. \$10,000 and \$35,000. D. \$11,250 and \$33,750. Depreciation in 2013 = (\$45,000 - 5,000) ÷ 4 = \$10,000 Book value, 12/31/2013 = \$45,000 - 10,000 = \$35,000 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 #41 Topic: Determine periodic depreciation using both time-based and activity-based methods

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42. Using the straight-line method, depreciation for 2014 and book value at December 31, 2014, would be: Depreciation in 2014 = (\$45,000 - 5,000) ÷ 4 = \$10,000 Book value, 12/31/2014 = \$45,000 - (2 x \$10,000) = \$25,000 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 #42 Topic: Determine periodic depreciation using both time-based and activity-based methods 43. Using the double-declining balance method, depreciation for 2013 and book value at December 31, 2013, would be: Depreciation in 2013 = \$45,000 x 50% = \$22,500 Book value, 12/31/2013 = \$45,000 - 22,500 = \$22,500 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 #43 Topic: Determine periodic depreciation using both time-based and activity-based methods 44. Using the double-declining balance method, depreciation for 2014 and book value at December 31, 2014, would be: Depreciation in 2014 = [(\$45,000 - (45,000 x 50%)] x 50% = \$11,250 Book value, 12/31/2014 = \$45,000 - 22,500 - 11,250 = \$11,250 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 #44 Topic: Determine periodic depreciation using both time-based and activity-based methods

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45. Using the sum-of-the-years'-digits method, depreciation for 2013 and book value at December 31, 2013, would be: A. \$18,000 and \$27,000. B. \$16,000 and \$29,000. C. \$16,000 and \$24,000. D. \$18,000 and \$22,000. Depreciation in 2013 = (\$45,000 - 5,000) x 4/10 = \$16,000 Book value, 12/31/2013 = \$45,000 - 16,000 = \$29,000 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 #45 Topic: Determine periodic depreciation using both time-based and activity-based methods

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