Spiceland using the straight line method depreciation

This preview shows page 94 - 98 out of 194 pages.

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
Image of page 94

Subscribe to view the full document.

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
Image of page 95
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
Image of page 96

Subscribe to view the full document.

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
Image of page 97
Image of page 98

{[ snackBarMessage ]}

Get FREE access by uploading your study materials

Upload your study materials now and get free access to over 25 million documents.

Upload now for FREE access Or pay now for instant access
Christopher Reinemann
"Before using Course Hero my grade was at 78%. By the end of the semester my grade was at 90%. I could not have done it without all the class material I found."
— Christopher R., University of Rhode Island '15, Course Hero Intern

Ask a question for free

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern