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BE Chapter 10
BE Chapter 10
BE Chapter 10
BE10-2:
Truck
Cash price $30,000
sales taxes 2,100
painting and lettering 400
Cost of truck $32,500
BE10-3:
a)
Maintenance 45
Cash 45
b)
Truck asset 400
Cash 400
BE10-4:
Annual depreciation expense= 38000-6000/4=$8000
$8000 for both years.
BE10-5:
-to increase net income reported and decrease depreciation expense.
Because land does not suffer depreciation, but building does
-not ethical
BE10-6:
Year
1
Year
2
BE10-7:
depreciation cost = 39500-500= $39000
Depreciation cost per unit = 39000/150000=$0.26
D1=0.26 x 30000= $7.800
D2= 0.26 x 20.000=$5.200
BE10-8:
Annual depreciation cost= (32000-2000-9000)/4=$5250
BE10-9:
Accumulated 41000
depreciation -
quipment
Equipment 41000
Accumulated 37000
depreciation -
equipment
Loss on disposal of 4000
equipment asset
Equipment 41000
BE10-10:
2017
Sep 30
Depreciation expenses 5250
Cash 5250
Cash 18000
Accumulated 17250
depreciation -
equipment
Loss on disposal of 6750
plant assets
equipment 42000
BE10-15: