Spiceland topic determine periodic depreciation using

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Spiceland - Chapter 11 #30 Topic: Determine periodic depreciation using both time-based and activity-based methods
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Cutter Enterprises purchased equipment for $72,000 on January 1, 2013. The equipment is expected to have a five-year life and a residual value of $6,000. Spiceland - Chapter 11 31. Using the straight-line method, depreciation for 2013 would be: A. $13,200. B. $14,400. C. $72,000. D. None of the above is correct. ($72,000 - 6,000) ÷ 5 = $13,200 AACSB: Analytic AICPA FN: Measurement Blooms: Apply Difficulty: 1 Easy Learning Objective: 11-02 Determine periodic depreciation using both time-based and activity-based methods. Spiceland - Chapter 11 #31 Topic: Determine periodic depreciation using both time-based and activity-based methods
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32. Using the straight-line method, the book value at December 31, 2013, would be: $72,000 - 13,200 = $58,800 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 #32 Topic: Determine periodic depreciation using both time-based and activity-based methods 33. Using the straight-line method, depreciation for 2014 and the equipment's book value at December 31, 2014, would be: Depreciation, 2014 = ($72,000 - 6,000) ÷ 5 = $13,200 Book value, 12/31/14 = $72,000 - (2 x 13,200) = $45,600 AACSB: Analytic AICPA FN: Measurement Blooms: Apply Difficulty: 3 Hard
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Learning Objective: 11-02 Determine periodic depreciation using both time-based and activity-based methods. Spiceland - Chapter 11 #33 Topic: Determine periodic depreciation using both time-based and activity-based methods 34. Using the double-declining balance method, depreciation for 2013 and the book value at December 31, 2013, would be: Depreciation, 2013 = $72,000 x 40% = $28,800 Book value, 12/31/13 = $72,000 - 28,800 = $43,200 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 #34 Topic: Determine periodic depreciation using both time-based and activity-based methods
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35. Using the double-declining balance method, depreciation for 2014 would be: A. $28,800. B. $18,240. C. $17,280. D. None of the above is correct. Depreciation, 2014 = [$72,000 - ($72,000 x 40%)] x 40% = $17,280 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 #35 Topic: Determine periodic depreciation using both time-based and activity-based methods
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