Final Review Intermediate Accounting

compute 11-1 (1520 minutes)

(a)Straight-line method disparagement for each of historic period 1 through 3 =
$518,000 $50,000= $39,000
12

(b)Sum-of-the- social classs-Digits =12 X 13= 78
2

12/78 X ($518,000 $50,000) = $72,000disparagement Year 1
11/78 X ($518,000 $50,000) = $66,000 derogation Year 2
10/78 X ($518,000 $50,000) = $60,000 wear and tear Year 3

(c)Double-Declining-Balance method
depreciation rate.100%X 2 = 16.67%
12


$518,000 X 16.67% =$86,351 depreciation Year 1
($518,000 $86,351) X 16.67% =$71,956 depreciation Year 2
($518,000 $86,351 $71,956) X 16.67% =$59,961 depreciation Year 3

EXERCISE 11-4 (1525 minutes)

(a)$279,000 $15,000 = $264,000; $264,000 ÷ 10 yrs. = $26,400

(b)$264,000 ÷ 240,000 units = $1.10; 25,500 units X $1.10 = $28,050

(c)$264,000 ÷ 25,000 hours = $10.56 per hr.; 2,650 hrs. X $10.



56 = $27,984

(d)10 + 9 + 8 + 7 + 6 + 5 + 4 + 3 + 2 + 1 = 55 ORn(n + 1)=10(11)= 55
22

10X $264,000 X 1/3 =$16,000
55

9X $264,000 X 2/3 = 28,800
55

intact for 2011$44,800

(e)$279,000 X 20% X 1/3 = $18,600

[$279,000 ($279,000 X 20%)] X 20% X 2/3 = 29,760

Total for 2011$48,360

[May also be computed as 20% of ($279,000 2/3 of 20% of $279,000)]


EXERCISE 11-6 (2030 minutes)

(a)2010Straight-line$304,000 $16,000= $36,000/year
8

3 monthsâ€"Depreciation ($36,000 X 3/12) = $9,000

(b)2010Output$304,000 $16,000= $7.20/output unit
40,000

1,000 units X $7.20 = $7,200

(c)2010Working hours$304,000 $16,000= $14.40/hour
20,000

525 hours X $14.40 = $7,560


(d)8 + 7 + 6 + 5 + 4 + 3 + 2 + 1 = 36 ORn(n + 1)=8(9)= 36
22

Allocated to
Sum-of-the-years-digitsTotal201020112012
Year 18/36 X $288,000 =$64,000$16,000$48,000
27/36 X $288,000 =$56,000 14,000$42,000
36/36 X $288,000 =$48,000 12,000
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