Horngren's Financial & Managerial Accounting, The Financial Chapters (Book & Access Card)
5th Edition
ISBN: 9780134078939
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
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Chapter 9, Problem 9.3SE
1. (a)
To determine
Methods of
The three methods of depreciation are:
- Straight-line method: Under the straight-line method of depreciation, the same amount of depreciation is allocated every year over the estimated useful life of an asset.
- Units-of-production method: In this method of depreciation, the amount of depreciation is charged based on the unit of production each year.
- Double-declining balance method: In this method of depreciation, the diminishing value of the asset is taken into consideration for determining the depreciation for the succeeding years.
To Compute: the amount of depreciation for the first year for A Company under the straight-line method
(b)
To determine
To Compute: the amount of first-year depreciation under the units-of- production method.
(c)
To determine
To Compute: the amount of first-year depreciation under the double-declining-balance method.
2.
To determine
To Show: the book value of the airplane of A Company under the three methods.
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On January 1, 2018, Advanced Airlines purchased a used airplane for $48,500,000. Advanced Airlines expects the plane to remain useful for five years (4,000,000 miles) and to have a residual value of $4,500,000. The company expects the plane to be flown 1,200,000 miles the first year.
Read the requirements
Requirement 1a. Compute Advanced Airlines's first-year depreciation expense on the plane using the straight-line method.
Begin by selecting the formula to calculate the company's first-year depreciation expense on the plane using the straight-line method. Then enter the amounts and calculate the depreciation for the first year.
Straight-line depreciation
- X
Requirements
1. Compute Advanced Airlines's first-year depreciation expense on the plane using
the following methods:
a. Straight-line
b. Units-of-production
c. Double-declining-balance
2. Show the airplane's book value at the end of the first year for all three methods.
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Done
Required information
[The following information applies to the questions displayed below.]
NewTech purchases computer equipment for $264,000 to use in operating activities for the next four years. It estimates
the equipment's salvage value at $28,000.
Prepare a table showing depreciation and book value for each of the four years assuming straight-line depreciation.
Straight-Line Depreciation
Choose Numerator:
Choose Denominator:
Annual Depreciation
Expense
=
=
Year
Annual Depreciation
Year 1
Year 2
Year 3
Year 4
Total
Depreciation expense
WHEREL
Year-End Book Value
Required information
[The following information applies to the questions displayed below.]
NewTech purchases computer equipment for $271,000 to use in operating activities for the next four years. It estimates
the equipment's salvage value at $25,000.
Prepare a table showing depreciation and book value for each of the four years assuming straight-line depreciation.
Straight-Line Depreciation
Annual Depreciation
Expense
Choose Numerator:
Choose Denominator:
Depreciation expense
Year
Annual Depreciation
Year-End Book Value
Year 1
Year 2
Year 3
Year 4
Total
Chapter 9 Solutions
Horngren's Financial & Managerial Accounting, The Financial Chapters (Book & Access Card)
Ch. 9 - Prob. 1QCCh. 9 - Prob. 2QCCh. 9 - Which method almost always produces the most...Ch. 9 - A Celty Airline jet costs 28,000,000 and is...Ch. 9 - A copy machine costs 45,000 when new and has...Ch. 9 - Suppose Print and Photo Center in the preceding...Ch. 9 - Prob. 7QCCh. 9 - Prob. 8QCCh. 9 - Liberty Corporation reported beginning and ending...Ch. 9 - A truck costs 50,000 when new and has accumulated...
Ch. 9 - Prob. 1RQCh. 9 - Prob. 2RQCh. 9 - Prob. 3RQCh. 9 - Prob. 4RQCh. 9 - Prob. 5RQCh. 9 - What is the difference between a capital...Ch. 9 - Prob. 7RQCh. 9 - Prob. 8RQCh. 9 - How does a business decide which depreciation...Ch. 9 - Prob. 10RQCh. 9 - Prob. 11RQCh. 9 - Prob. 12RQCh. 9 - Prob. 13RQCh. 9 - How is gain o r loss determined when disposing of...Ch. 9 - Prob. 15RQCh. 9 - Prob. 16RQCh. 9 - Prob. 17RQCh. 9 - Prob. 18RQCh. 9 - Prob. 19RQCh. 9 - What does it mean if an exchange of plant assets...Ch. 9 - Determining the cost of an asset Alton Clothing...Ch. 9 - Prob. 9.2SECh. 9 - Prob. 9.3SECh. 9 - Computing second-year depreciation and accumulated...Ch. 9 - Calculating partial-year depreciation On September...Ch. 9 - Prob. 9.6SECh. 9 - Prob. 9.7SECh. 9 - Discarding an asset On May 31, 2016, Choice...Ch. 9 - Selling an asset at gain or loss Mill Creek Golf...Ch. 9 - Selling an asset at gain or loss Pelman Company...Ch. 9 - Accounting for depletion of natural resources...Ch. 9 - Accounting for an intangible asset On March 1,...Ch. 9 - Prob. 9.13SECh. 9 - Prob. 9.14SECh. 9 - Prob. 9.15SECh. 9 - Prob. 9.16SECh. 9 - Prob. 9.17ECh. 9 - Making a lump-sum purchase of assets Dearwood...Ch. 9 - Prob. 9.19ECh. 9 - Computing depreciation-three methods Crackling...Ch. 9 - Changing an asset's useful life and residual value...Ch. 9 - Recording partial-year depreciation and sale of an...Ch. 9 - Prob. 9.23ECh. 9 - Prob. 9.24ECh. 9 - Prob. 9.25ECh. 9 - Prob. 9.26ECh. 9 - Computing asset turnover ratio Snap Dragon Photo...Ch. 9 - Prob. 9.28ECh. 9 - Measuring asset cost, units-of-production...Ch. 9 - Prob. 9.30APCh. 9 - Determining asset cost, recording first-year...Ch. 9 - Recording lump-sum asset purchases, depreciation,...Ch. 9 - Prob. 9.33APCh. 9 - Prob. 9.34APCh. 9 - Journalizing partial-year depreciation and asset...Ch. 9 - Prob. 9.36BPCh. 9 - Determining asset cost, recording rust-year...Ch. 9 - Recording lump-sum asset purchases, depreciation,...Ch. 9 - Prob. 9.39BPCh. 9 - Prob. 9.40BPCh. 9 - Journalizing partial-year depreciation and asset...Ch. 9 - Prob. 9.42CPCh. 9 - Western Bank Trust purchased land and a building...Ch. 9 - Prob. 9.1CTFCCh. 9 - Prob. 9.1CTFSCCh. 9 - In 150 words or fewer, explain the different...
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