INTERMEDIATE ACCOUNTING
3rd Edition
ISBN: 9780136946694
Author: GORDON
Publisher: RENT PEARS
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Textbook Question
Chapter 11, Problem 11.17E
| Year | Units of Output | Year | Units of Output |
| 1 | 1,600,000 | 6 | 1,300,000 |
| 2 | 1,600,000 | 7 | 1,200,000 |
| 3 | 1,500,000 | 8 | 1,200,000 |
| 4 | 1,500,000 | 9 | 1,100,000 |
| 5 | 1,300,000 | 10 | 1,100,000 |
Required
Prepare the depreciation schedules for the manufacturing equipment assuming that Ace used the following methods (each case is independent):
- a. Straight-line method.
- b. Units-of-output method.
- c. Double-declining balance method. (Reduce the depreciation expense in the last year to the necessary amount to arrive at an ending book value equal to the scrap value.)
- d. Ace sells the manufacturing equipment at the end of Year 5 for $1,465,000. What is the gain or loss on sale under each of the depreciation methods in parts (a)–(c)?
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Chapter 11 Solutions
INTERMEDIATE ACCOUNTING
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