Straight line method of depreciation : This is one of the methods to calculate the depreciation on assets. Under this method the depreciable value of asset it divided equally for each year f its estimated life. The formula to calculate the deprecation under straight line method is as follows: A n n u a l S t r a i g h t l i n e d e p r e c i a t i o n = ( C o s t − S a l v a g e V a l u e ) E s t i m a t e d l i f e i n y e a r s Double Declining balance method of depreciation: This is one of the methods to calculate the depreciation on assets. Under this method, the depreciation is calculated on the beginning book value of depreciation using a depreciation rate. The depreciation rate is calculated with the help of following formula: D o u b l e d e c l i n i n g d e p r e c i a t i o n r a t e = 2 E x p e c t e d l i f e i n y e a r s Units of Production method of depreciation: This is one of the methods to calculate the depreciation on assets. Under this method the depreciable value of asset is allocated on the basis of unit of production during its estimated life. The formula to calculate the deprecation under units of production method is as follows: D e p r e c i a t i o n = ( C o s t - S a l v a g e V a l u e ) × U n i t s f o r t h e p e r i o d E s t i m a t e d l i f e i n u n i t s x Requirement-1: To prepare: the depreciation schedules using three methods of depreciation

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Answer 1

Question

Chapter 10, Problem E10.20E

To determine

Concept Introduction:

Straight line method of depreciation: This is one of the methods to calculate the depreciation on assets. Under this method the depreciable value of asset it divided equally for each year f its estimated life. The formula to calculate the deprecation under straight line method is as follows:

$A n n u a l S t r a i g h t l i n e d e p r e c i a t i o n = \frac{(C o s t - S a l v a g e V a l u e)}{E s t i m a t e d l i f e i n y e a r s}$

Double Declining balance method of depreciation: This is one of the methods to calculate the depreciation on assets. Under this method, the depreciation is calculated on the beginning book value of depreciation using a depreciation rate. The depreciation rate is calculated with the help of following formula:

$D o u b l e d e c l i n i n g d e p r e c i a t i o n r a t e = \frac{2}{E x p e c t e d l i f e i n y e a r s}$

Units of Production method of depreciation: This is one of the methods to calculate the depreciation on assets. Under this method the depreciable value of asset is allocated on the basis of unit of production during its estimated life. The formula to calculate the deprecation under units of production method is as follows:

$D e p r e c i a t i o n = \frac{(C o s t - S a l v a g e V a l u e) \times U n i t s f o r t h e p e r i o d}{E s t i m a t e d l i f e i n u n i t s}$ x

Requirement-1:

To prepare: the depreciation schedules using three methods of depreciation

To determine

Requirement-2:

To Indicate: The depreciation method that tracks the wear and tear on the equipment closely

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Please make a trial balance, adjusted trial balance, Income statement. end balance ,owners equity statement, Balance sheet , Cash flow statement ,Cash end balance

Activity Based Costing - practice problem Fontillas Instrument, Inc. manufactures two products: missile range instruments and space pressure gauges. During April, 50 range instruments and 300 pressure gauges were produced, and overhead costs of $89,500 were estimated. An analysis of estimated overhead costs reveals the following activities. Activities 1. Materials handling 2. Machine setups Cost Drivers Number of requisitions Number of setups Total cost $35,000 27,500 3. Quality inspections Number of inspections 27,000 $89.500 The cost driver volume for each product was as follows: Cost Drivers Instruments Gauge Total Number of requisitions 400 600 1,000 Number of setups 200 300 500 Number of inspections 200 400 600 Insructions (a) Determine the overhead rate for each activity. (b) Assign the manufacturing overhead costs for April to the two products using activity-based costing.

Bodhi Company has three cost pools and two doggie products (leashes and collars). The activity cost pool of ordering has the cost drive of purchase orders. The activity cost pool of assembly has a cost driver of parts. The activity cost pool of supervising has the cost driver of labor hours. The accumulated data relative to those cost drivers is as follows: Expected Use of Estimated Cost Drivers by Product Cost Drivers Overhead Leashes Collars Purchase orders $260,000 70,000 60,000 Parts 400,000 300,000 500,000 Labor hours 300,000 15,000 10,000 $960,000 Instructions: (a) Compute the activity-based overhead rates. (b) Compute the costs assigned to leashes and collars for each activity cost pool. (c) Compute the total costs assigned to each product.

Answer 2

Question

Chapter 10, Problem E10.20E

To determine

Concept Introduction:

Straight line method of depreciation: This is one of the methods to calculate the depreciation on assets. Under this method the depreciable value of asset it divided equally for each year f its estimated life. The formula to calculate the deprecation under straight line method is as follows:

$A n n u a l S t r a i g h t l i n e d e p r e c i a t i o n = \frac{(C o s t - S a l v a g e V a l u e)}{E s t i m a t e d l i f e i n y e a r s}$

Double Declining balance method of depreciation: This is one of the methods to calculate the depreciation on assets. Under this method, the depreciation is calculated on the beginning book value of depreciation using a depreciation rate. The depreciation rate is calculated with the help of following formula:

$D o u b l e d e c l i n i n g d e p r e c i a t i o n r a t e = \frac{2}{E x p e c t e d l i f e i n y e a r s}$

Units of Production method of depreciation: This is one of the methods to calculate the depreciation on assets. Under this method the depreciable value of asset is allocated on the basis of unit of production during its estimated life. The formula to calculate the deprecation under units of production method is as follows:

$D e p r e c i a t i o n = \frac{(C o s t - S a l v a g e V a l u e) \times U n i t s f o r t h e p e r i o d}{E s t i m a t e d l i f e i n u n i t s}$ x

Requirement-1:

To prepare: the depreciation schedules using three methods of depreciation

To determine

Requirement-2:

To Indicate: The depreciation method that tracks the wear and tear on the equipment closely

Expert Solution & Answer

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Answer 3

Question

Chapter 10, Problem E10.20E

To determine

Concept Introduction:

Straight line method of depreciation: This is one of the methods to calculate the depreciation on assets. Under this method the depreciable value of asset it divided equally for each year f its estimated life. The formula to calculate the deprecation under straight line method is as follows:

$A n n u a l S t r a i g h t l i n e d e p r e c i a t i o n = \frac{(C o s t - S a l v a g e V a l u e)}{E s t i m a t e d l i f e i n y e a r s}$

Double Declining balance method of depreciation: This is one of the methods to calculate the depreciation on assets. Under this method, the depreciation is calculated on the beginning book value of depreciation using a depreciation rate. The depreciation rate is calculated with the help of following formula:

$D o u b l e d e c l i n i n g d e p r e c i a t i o n r a t e = \frac{2}{E x p e c t e d l i f e i n y e a r s}$

Units of Production method of depreciation: This is one of the methods to calculate the depreciation on assets. Under this method the depreciable value of asset is allocated on the basis of unit of production during its estimated life. The formula to calculate the deprecation under units of production method is as follows:

$D e p r e c i a t i o n = \frac{(C o s t - S a l v a g e V a l u e) \times U n i t s f o r t h e p e r i o d}{E s t i m a t e d l i f e i n u n i t s}$ x

Requirement-1:

To prepare: the depreciation schedules using three methods of depreciation

To determine

Requirement-2:

To Indicate: The depreciation method that tracks the wear and tear on the equipment closely

Expert Solution & Answer

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Check out a sample textbook solution

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Answer 4

Question

Chapter 10, Problem E10.20E

To determine

Concept Introduction:

Straight line method of depreciation: This is one of the methods to calculate the depreciation on assets. Under this method the depreciable value of asset it divided equally for each year f its estimated life. The formula to calculate the deprecation under straight line method is as follows:

$A n n u a l S t r a i g h t l i n e d e p r e c i a t i o n = \frac{(C o s t - S a l v a g e V a l u e)}{E s t i m a t e d l i f e i n y e a r s}$

Double Declining balance method of depreciation: This is one of the methods to calculate the depreciation on assets. Under this method, the depreciation is calculated on the beginning book value of depreciation using a depreciation rate. The depreciation rate is calculated with the help of following formula:

$D o u b l e d e c l i n i n g d e p r e c i a t i o n r a t e = \frac{2}{E x p e c t e d l i f e i n y e a r s}$

Units of Production method of depreciation: This is one of the methods to calculate the depreciation on assets. Under this method the depreciable value of asset is allocated on the basis of unit of production during its estimated life. The formula to calculate the deprecation under units of production method is as follows:

$D e p r e c i a t i o n = \frac{(C o s t - S a l v a g e V a l u e) \times U n i t s f o r t h e p e r i o d}{E s t i m a t e d l i f e i n u n i t s}$ x

Requirement-1:

To prepare: the depreciation schedules using three methods of depreciation

To determine

Requirement-2:

To Indicate: The depreciation method that tracks the wear and tear on the equipment closely

Expert Solution & Answer

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Answer 5

Chapter 10, Problem E10.20E

To determine

Concept Introduction:

Straight line method of depreciation: This is one of the methods to calculate the depreciation on assets. Under this method the depreciable value of asset it divided equally for each year f its estimated life. The formula to calculate the deprecation under straight line method is as follows:

$A n n u a l S t r a i g h t l i n e d e p r e c i a t i o n = \frac{(C o s t - S a l v a g e V a l u e)}{E s t i m a t e d l i f e i n y e a r s}$

Double Declining balance method of depreciation: This is one of the methods to calculate the depreciation on assets. Under this method, the depreciation is calculated on the beginning book value of depreciation using a depreciation rate. The depreciation rate is calculated with the help of following formula:

$D o u b l e d e c l i n i n g d e p r e c i a t i o n r a t e = \frac{2}{E x p e c t e d l i f e i n y e a r s}$

Units of Production method of depreciation: This is one of the methods to calculate the depreciation on assets. Under this method the depreciable value of asset is allocated on the basis of unit of production during its estimated life. The formula to calculate the deprecation under units of production method is as follows:

$D e p r e c i a t i o n = \frac{(C o s t - S a l v a g e V a l u e) \times U n i t s f o r t h e p e r i o d}{E s t i m a t e d l i f e i n u n i t s}$ x

Requirement-1:

To prepare: the depreciation schedules using three methods of depreciation

To determine

Requirement-2:

To Indicate: The depreciation method that tracks the wear and tear on the equipment closely

Answer 6

Chapter 10, Problem E10.20E

To determine

Concept Introduction:

Straight line method of depreciation: This is one of the methods to calculate the depreciation on assets. Under this method the depreciable value of asset it divided equally for each year f its estimated life. The formula to calculate the deprecation under straight line method is as follows:

$A n n u a l S t r a i g h t l i n e d e p r e c i a t i o n = \frac{(C o s t - S a l v a g e V a l u e)}{E s t i m a t e d l i f e i n y e a r s}$

Double Declining balance method of depreciation: This is one of the methods to calculate the depreciation on assets. Under this method, the depreciation is calculated on the beginning book value of depreciation using a depreciation rate. The depreciation rate is calculated with the help of following formula:

$D o u b l e d e c l i n i n g d e p r e c i a t i o n r a t e = \frac{2}{E x p e c t e d l i f e i n y e a r s}$

Units of Production method of depreciation: This is one of the methods to calculate the depreciation on assets. Under this method the depreciable value of asset is allocated on the basis of unit of production during its estimated life. The formula to calculate the deprecation under units of production method is as follows:

$D e p r e c i a t i o n = \frac{(C o s t - S a l v a g e V a l u e) \times U n i t s f o r t h e p e r i o d}{E s t i m a t e d l i f e i n u n i t s}$ x

Requirement-1:

To prepare: the depreciation schedules using three methods of depreciation

Answer 7

Chapter 10, Problem E10.20E

To determine

Concept Introduction:

Straight line method of depreciation: This is one of the methods to calculate the depreciation on assets. Under this method the depreciable value of asset it divided equally for each year f its estimated life. The formula to calculate the deprecation under straight line method is as follows:

$A n n u a l S t r a i g h t l i n e d e p r e c i a t i o n = \frac{(C o s t - S a l v a g e V a l u e)}{E s t i m a t e d l i f e i n y e a r s}$

Double Declining balance method of depreciation: This is one of the methods to calculate the depreciation on assets. Under this method, the depreciation is calculated on the beginning book value of depreciation using a depreciation rate. The depreciation rate is calculated with the help of following formula:

$D o u b l e d e c l i n i n g d e p r e c i a t i o n r a t e = \frac{2}{E x p e c t e d l i f e i n y e a r s}$

Units of Production method of depreciation: This is one of the methods to calculate the depreciation on assets. Under this method the depreciable value of asset is allocated on the basis of unit of production during its estimated life. The formula to calculate the deprecation under units of production method is as follows:

$D e p r e c i a t i o n = \frac{(C o s t - S a l v a g e V a l u e) \times U n i t s f o r t h e p e r i o d}{E s t i m a t e d l i f e i n u n i t s}$ x

Requirement-1:

To prepare: the depreciation schedules using three methods of depreciation

Answer 8

To determine

Requirement-2:

To Indicate: The depreciation method that tracks the wear and tear on the equipment closely

Answer 9

To determine

Requirement-2:

To Indicate: The depreciation method that tracks the wear and tear on the equipment closely

Answer 10

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Answer 11

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Answer 12

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Answer 13

Ch. 10 - Prob. 1QC Ch. 10 - Prob. 2QC Ch. 10 - Which method almost always produces the most...Ch. 10 - A Celty Airline jet costs $28,000,000 and expected...Ch. 10 - Prob. 5QC Ch. 10 - Prob. 6QC Ch. 10 - Prob. 7QC Ch. 10 - Prob. 8QC Ch. 10 - Prob. 9QC Ch. 10 - Prob. 10AQC

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To Indicate: The depreciation method that tracks the wear and tear on the equipment closely

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Requirement-2:

To Indicate: The depreciation method that tracks the wear and tear on the equipment closely