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.