Valix Finacc vol 1 Problem 17-17

Financial Accounting Volume 1 2008 Valix-Peralta
Chapter 17 Problem 17-17

1. Land (350,000 + 450,000)                                                                                          800,000                                                                                                                                               

    Land acquired (380,000 + 25,000 + 45,000)                                                  450,000    

2. Depreciation of land improvements (180,000 / 15)                                                   12,000                

3. Depreciation of building (4,500,000 – 1,050,000 x 7.5%)                                            258,750                                                                                                                                                      

                                                                                                              231        

4. Depreciation of machinery and equipment

(1,160,000 – 60,000 / 10)                                                                                   110,000      

(300,000 / 10)                                                                                                     30,000            (60,000 / 10 x 6/12)                                                                                                   3,000         

                                                                                                                                    143,000

5. Fixed rate (100% / 3 x 1.5)                                                                                             50%         

 

    (1,800,000 – 1,344,000 x 50%)                                                                                    228,000