Solved by verified expert :1.Exercise 9-3 ?Determine Cost of Land
Discount Delivery Company
acquired an adjacent lot to construct a new warehouse, paying $25,000 and
giving a short-term note for $300,000. Legal fees paid were $2,100,
delinquent taxes assumed were $14,000, and fees paid to remove an old
building from the land were $9,000. Materials salvaged from the demolition of
the building were sold for $3,500. A contractor was paid $800,000 to
construct a new warehouse.
Determine the cost of the land to
be reported on the balance sheet.?$
4.
Depreciation byUnits-of-Production
Method
A diesel-powered tractor with a
cost of $185,000 and estimatedresidual value of $37,000 is expected to have a useful operating
life of 40,000 hours. During February, the generator was operated 140 hours.
Determine the depreciation for
the month. Carryout any division to one decimal place.
5.
depreciation by Two Methods
A storage tank acquired at the
beginning of the fiscal year at a cost of $344,000 has an estimatedresidual value of $50,000 and an estimated
useful life of 16 years.
a. Determine the amount of annual depreciation by thestraight-line method.?$3,125
b. Determine the amount of depreciation for the first and
second years computed by thedouble-declining-balance
method.
Depreciation
Year 1
Year 2
7. Disposal ofFixed
Asset
Equipment acquired on January 4,
2009, at a cost of $425,000, has an estimated useful life of nine years and an
estimatedresidual value of $65,000.
a. What was the annual amount ofdepreciation for the years 2009, 2010, and 2011, using thestraight-line
method of depreciation?
Year
Depreciation Expense
2009
$
2010
$
2011
$
b. What was thebook value of the equipment on January 1, 2012??$
8. Compare ThreeDepreciation Methods
Breyer Company purchased packaging
equipment on January 3, 2010, for $101,250. The equipment was expected to have
a useful life of three years, or 25,000 operating hours, and aresidual
value of $7,500. The equipment was used
for 9,500 hours during 2010, 8,400 hours in 2011, and 7,100 hours in 2012.
Instructions:
1. Determine the amount of depreciation expense for the years ended
December 31, 2010, 2011, and 2012, by theStraight-Line
Method, theUnits-of-Production
Method, and theDouble-Declining-Balance
Method. Also determine the total
depreciation expense for the three years by each method.
Depreciation Expense
Year
Straight-Line Method
Units-of-Production Method
Double-Declining-Balance Method
2010
$
$
$
2011
$
$
$
2012
$
$
$
Total
$
$
$
