Week 7 Homework for Acct 550 Essay

412 WordsApr 22, 20152 Pages
E11-4 a. $315,000 – $15,000 = $300,000; $300,000 ÷ 10 yrs. = $30,000 b. $300,000 ÷ 240,000 units = $1.25; 25,500 units X $1.25 = $31,875 c. $300,000 ÷ 25,000 hours = $12.00 per hr.; 2,650 hrs. X $12.00 = $31,800 d. 10 + 9 + 8 + 7 + 6 + 5 + 4 + 3 + 2 + 1 = 55 OR n(n+1)/2 = 10(11)/2 = 55 10/55 x 300,000 x 1/3 = 18,182 9/55 x 300,000 x 2/3 = 32,727 Total for 2014 = 50,909 e. $315,000 X 20% X 1/3 = $21,000 [$315,000 – ($315,000 X 20%)] X 20% X 2/3 = 33,600 Total for 2014 $54,600 E11-9 Estimated Depreciable Estimated Depreciation a. Asset Cost Salvage Cost Life per Year A $ 40,500 $ 5,500 $ 35,000 10 $ 3,500 B 33,600 4,800 28,800 9 3,200 C 36,000 3,600 32,400 9 3,600 D 19,000 1,500 17,500 7 2,500 E 23,500 2,500 21,000 6 3,500 $152,600 $17,900 $134,700 $16,300 Composite life = $134,700 ÷ $16,300, or 8.26 years Composite rate = $16,300 ÷ $152,600, or approximately 10.7% b. Depreciation Expense—Plant Assets 16,300 Accumulated Depreciation—Plant Assets 16,300 C. Cash 4,800 Accumulated Depreciation—Plant Assets 14,200 Plant Assets 19,000 E11-11 a. No correcting entry is necessary, because any changes in estimates are handled in the current and prospective periods. b. Revised annual charge Book value as of 1/1/2015 [$60,000 – ($7,000 X 5)] = $25,000 Remaining useful life, 5 years (10 years – 5 years) Revised salvage value, $4,500 ($25,000 – $4,500) ÷ 5 = $4,100 Depreciation Expense—Equipment 4,100 Accumulated Depreciation—Equipment 4,100 E11-17 a. Loss on Impairment 3,220,000 Accumulated Depreciation—Equipment 3,220,000 Cost $9,000,000 Accumulated depreciation 1,000,000 Carrying amount 8,000,000 Less: Fair value 4,800,000 Plus: Cost of disposal 20,000 Loss on

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