Chapter 17 Problem 17-20 to 25
Problem 17-20 Answer A
Cost of machinery (cash price) 1,100,000
Less: Residual value 50,000
Depreciable cost 1,050,000
Straight line depreciation (1,050,000 / 10) 105,000
Problem 17-21 Answer B
Sales price 2,300,000
Book value:
Cost 4,200,000
Accumulated depreciation (3,600,000 / 5 x 3) 2,160,000 2,040,000
Gain 260,000
Problem 17-22 Answer B
Accumulated depreciation – 12/31/2007 3,700,000
Add: Depreciation for 2008 550,000
Total 4,250,000
Less: Accumulated depreciation on property, plant and
equipment retirements (squeeze) 250,000
Accumulated depreciation – 12/31/2008 4,000,000
Problem 17-23 Answer B
Depreciable Annual
Cost Salvage cost Life depreciation
A 550,000 50,000 500,000 20 25,000
B 200,000 20,000 180,000 15 12,000
C 40,000 40,000 5 8,000
790,000 720,000 45,000
Composite life = 720,000 / 45,000 16 years
Problem 17-24 Answer D
Invoice price 4,500,000
Cash discount (2% x 4,500,000) ( 90,000)
Delivery cost 80,000
Installation and testing 310,000
Total cost 4,800,000
Salvage value 800,000
Depreciable cost 4,000,000
Rate per unit (4,000,000 / 200,000) 20
Depreciation for 2008 (30,000 x 20) 600,000
Problem 17-25 Answer B
Cost 4,000,000
Accumulated depreciation
2007 (8/36 x 3,600,000) 800,000
2008 (7/36 x 3,600,000) 700,000 1,500,000
Book value, 12/31/2008 2,500,000
No comments:
Post a Comment