FINANCIAL AND MANAGERIAL ACCOUNTING
FINANCIAL AND MANAGERIAL ACCOUNTING
9th Edition
ISBN: 2818440048890
Author: Wild
Publisher: MCG CUSTOM
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Chapter 8, Problem 9QS

1.

To determine

Concept Introduction

Depreciation: Depreciation is the process by which assets gradually lose value until their worth is zero. Almost every permanent asset can depreciate over time. The value of land, a fixed asset that appreciates (increases) over time, is not subject to depreciation.

The depreciation expense for the last three months of the first year.

2.

To determine

Concept Introduction

Depreciation: Depreciation is the process by which assets gradually lose value until their worth is zero. Almost every permanent asset can depreciate over time. The value of land, a fixed asset that appreciates (increases) over time, is not subject to depreciation.

The depreciation expense for the second year.

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A tractor for over-the-road hauling is purchased for $95,000.00. It is expected to be of use to the company for 6 years, after which it will be salvaged for $3,200.00. Calculate the depreciation deduction and the unrecovered investment during each year of the tractors life. a. Use straight-line depreciation. Provide depreciation and book value for year 6. Depreciation for year 6 = $ book value for year 6 = $ b. Use declining-balance depreciation, with a rate that ensures the book value equals the salvage value. Provide depreciation and book value for year 6. Depreciation for year 6 = $ book value for year 6 = $ c. Use double declining balance depreciation. Provide depreciation and book value for year 6. Depreciation for year 6 = $ book value for year 6 = $ d. Use double declining balance, switching to straight-line depreciation. Provide depreciation and book value for year 6. Depreciation for year 6 = $ book value for year 6 = $ Do all computations to 5 decimal places and round final…
A tractor for over-the-road hauling is purchased for $75,000.00. It is expected to be of use to the company for 6 years, after which it will be salvaged for $4,200.00. Calculate the depreciation deduction and the unrecovered investment during each year of the tractors life. a. Use straight-line depreciation. Provide depreciation and book value for year 6. Depreciation for year 6 = $ 7080 book value for year 6 = $ 32520 b. Use declining-balance depreciation, with a rate that ensures the book value equals the salvage value. Provide depreciation and book value for year 6. Depreciation for year 6 = $ book value for year 6 = $ 4449.46 13348.39 c. Use double declining balance depreciation. Provide depreciation and book value for year 6. Depreciation for year 6 = $ 4915.20 book value for year 6 = $ 19660.80 d. Use double declining balance, switching to straight-line depreciation. Provide depreciation and book value for year 6. Depreciation for year 6 = $ 7080 book value for year 6 = $ 32520
A tractor for over-the-road hauling is purchased for $105,000.00. It is expected to be of use to the company for 6 years, after which it will be salvaged for $4,200.00. Calculate the depreciation deduction and the unrecovered investment during each year of the tractors life. a. Use straight-line depreciation. Provide depreciation and book value for year 6. Depreciation for year 6 = S__ book value for year 6 = S_

Chapter 8 Solutions

FINANCIAL AND MANAGERIAL ACCOUNTING

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