E11-4

A. Straight Line
$279,000-$15000
264,000/10

=
=

B.
$264,000 240,000 units
25,500 units X $1.10

=
=

1.1
$28,050

C.
$264,000 25,000 hours
2,650 hrs. X $10.56

=
=

$10.56 per hr
$27,984

D.
n(n+1)
10x $264,000x1/3
10x $264,000x2/3
Total for 2013

=
=
=
=

10(11)
$16,000
$28,800
$44,800

E.
$279,000*20%*1/3
($279,000 ($279,000 X 20%)) x 20% x 2/3
Total for 2013

=
=
=

$18,600
$29,760
$48,360

$264,000
$26,400

E11-8
Old Machine
Old Machine
June 1st

Annual Depr.
Revised Annual Depreciation

Purchase
Freight
Installation
Total

31800
200
500
32500
3000
3300

New Machine
CashPaid
Fair Value of Old Machine
Installation Cost
Total Cost of New Machine
Depr. Year Beginnning June 1,2014

3250

15000
20000
1500
36500

Book Vaue
1-Jun

Book Vaue
Fair Value
Loss on Exhcnage
Cost of Removal
Total Loss/Gain

22300
20000
2300
75
2375

9-Nov
A.
Asset
A
B
C
D
E

Cost

Composite Life (Years)

Composite rate (%)
B

Account
Dr
Depreciation Expense
Accum. Depr of Equipment

Account
Dr
Cash
Accum Dep. Equipment
Equipment

40500
33600
36000
19000
23500
152600

Estimated Salvage Depreciable Cost Estimated Life

5500
35000
4800
28800
3600
32400
1500
17500
2500
21000
17900
134700

8.042
11.0
Cr
16750
16750

Cr
5000
14000
19000

10
9
8
7
6
40

Depreciation Expense Per Year

3500
3200
4050
2500
3500
16750

E11-11
A. No correcting entry necessary
B. Revision-Accnual Charge
Book Value 1/1/13
Remaining Useful Life
Revised Salvage
Total Revision
Account
Dr
Depreciation Expense
Accum. Depr Equipment

22000
5
4500
3500
Cr
3500
3500

E11-17
A. Loss on Impairment
Account
Loss of Impairment
Accum Dep Equipment

Dr

Cr
3,620,000
3,620,000.00

Cost
Accum Depr
Carrying Amt
Less FV
Plus Cost of Disposal
Loss on Impairment

9,000,000
(1,000,000)
8,000,000
-4400000
20,000
3,620,000

B. No entry necessary
C.
Account
Accumulated Dep-Equipment
Recovery of Loss on Impairment
Fair Value
Less Cost of Disposal
Carrying Amount
Recovery of Impairment Loss

Dr

Cr
700000
700000
5,100,000
-20000

5080000
(4,380,000)
700,000

E11-24
A
Asset Turnover Ratio

22745 =
29343.5

0.775

Rate of Return on Assets

4551 =
29343.5

15.509%

4551 =
22745

20.01%

B.

C.
Profit Margin on Sales

D.
Profit Margin on Salesx Asset Turnover=Return on Assets
15.51%

P11-5
Estimated Depleted
Depletion Base
Estimated Yield Per Ton
870000
120000
Estimated Depreciation
Asset
Cost
Building
Machinery 1/2
Machinery 1/2

B.
Depletion=
Depreciation

7.25

1st & 11th year Each of Years 2-10

43500
87000

Per ton Mined Year 1

36000 $
0.30
30000 $
0.25
30000 $
0.50

$ 36,250.00
Building
Machinery
Machinery
Total Depreciation

1500
1250
2500
5250

Year 2-5
1800
1500
3000

Year 6
3600
3600
3000
3000
60000
3000

Year 7-10 Year 11

3600
1800
3000
1500
0
0