Chapter 17 Problem 17-12
1. Old machinery overhauled (240,000 + 60,000) 300,000
Accumulated depreciation
2005 (240,000 / 8) 30,000
2006 30,000
2007 30,000
Total 90,000
Book value – January 1, 2008 210,000
Old machinery overhauled (210,000 / 7 years) 30,000
Remaining cost of old machinery (1,152,000 – 240,000 / 8) 114,000
New machinery (460,800 / 8 x 5/12) 24,000
Total depreciation 168,000
2. Old machinery 1,152,000
New machinery 460,800
Cost of overhaul 60,000
Total cost 1,672,800
Accumulated depreciation:
Balance – January 1 432,000
Depreciation for 2008 168,000 600,000
Book value – December 31, 2008 1,072,800
No comments:
Post a Comment