e. Depreciation is computed as follows: Residual Acquisition Useful Life Depreciation Asset Cost Value Date in Years Method Used Buildings $900,000 $0 January 2 50 Double-declining-balance Office Equip. 246,000 26,000 January 3 5 Straight-line Store Equip. 112,000 12,000 July 1 10 Straight-line Description Debit Credit f. A patent costing $48,000 when acquired on January 2 has a remaining legal life of 10 years and is expected to have value for eight years. Description Debit Credit g. The cost of mineral rights was $546,000. of the estimated deposit of 910,000 tons of ore, 50,000 tons were mined and sold during the year. Description Debit Credit

e. Depreciation is computed as follows: Residual Acquisition Useful Life Depreciation Asset Cost Value Date in Years Method Used Buildings $900,000 $0 January 2 50 Double-declining-balance Office Equip. 246,000 26,000 January 3 5 Straight-line Store Equip. 112,000 12,000 July 1 10 Straight-line Description Debit Credit f. A patent costing $48,000 when acquired on January 2 has a remaining legal life of 10 years and is expected to have value for eight years. Description Debit Credit g. The cost of mineral rights was $546,000. of the estimated deposit of 910,000 tons of ore, 50,000 tons were mined and sold during the year. Description Debit Credit

Name: e. Depreciation is computed as follows:ResidualAcquisitionUseful Life
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Description: e. Depreciation is computed as follows:ResidualAcquisitionUseful LifeDepreciationAssetCostValueDatein YearsMethod UsedBuildings$900,000$0January 250Double-declining-balanceOffice Equip.246,00026,000January 3Straight-lineStore Equip.112,00012,000July

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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