CHAPTER 14 – DEPRECIATIONCLASSWORKStudent Name:Date:1) A Dutch petroleum company purchased a barge for$1,300,000. The estimated life in 20 years, at which time itwill have a salvage value of $200,000. Find(a) The annual amount of depreciation using the straight-linemethod(b) The book value at the end of 5 years2) A bottle-capping machine costs $88,000, has an estimatedlife of 8 years, and has a scrap value of $16,000. Use thestraight-line method of depreciation to find(a) The annual rate of depreciation(b) The annual amount of depreciation(c) The book value at the end of the first year3) The new computer equipment at Capital Curb and Concretehas a cost of $14,500, an estimated life of 8 years, and ascrap value of $2100. Find (a) the annual depreciation and(b) the book value at the end of 4 years using the straight-line method of depreciation.

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1) A Dutch petroleum company purchased a barge for $1,300,000. The estimated life in 20 years, at which time it will have a salvage value of $200,000. Find (a) The annual amount of depreciation using the straight-line method (b) The book value at the end of 5 years

1) A Dutch petroleum company purchased a barge for $1,300,000. The estimated life in 20 years, at which time it will have a salvage value of $200,000. Find (a) The annual amount of depreciation using the straight-line method (b) The book value at the end of 5 years

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

CHAPTER 14 – DEPRECIATION
CLASSWORK
Student Name:
Date:
1) A Dutch petroleum company purchased a barge for
$1,300,000. The estimated life in 20 years, at which time it
will have a salvage value of $200,000. Find
(a) The annual amount of depreciation using the straight-line
method
(b) The book value at the end of 5 years
2) A bottle-capping machine costs $88,000, has an estimated
life of 8 years, and has a scrap value of $16,000. Use the
straight-line method of depreciation to find
(a) The annual rate of depreciation
(b) The annual amount of depreciation
(c) The book value at the end of the first year
3) The new computer equipment at Capital Curb and Concrete
has a cost of $14,500, an estimated life of 8 years, and a
scrap value of $2100. Find (a) the annual depreciation and
(b) the book value at the end of 4 years using the straight-
line method of depreciation.

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