1. Ludimila Manufacturing purchased a piece of production equipment on January 1, 2009. The equipment cost $6,500 and was estimated to have a salvage value of $500 at the end of its six-year life or 12,000 hours of use.

Compute depreciation expenses on the production equipment for 2009 and 2010 using the straight-line depreciation method and double-declining balance depreciation method.

Assume that Ludimila uses the units-of-production method. Compute depreciation expense for 2009 and 2010, if the equipment were used 2,500 hours in 2009 and 1,900 hours in 2010.

2. On June 30, 2009, Newsom Company sold equipment for $7,250 that had been acquired for $14,500 on January 1, 2007. Newsom originally estimated that the computer would have a five-year useful life and a $500 salvage value. Newsom used straight-line depreciation. The companys fiscal year ends on December 31 and records depreciation expense at the end of each fiscal year.

Determine the book value of the computer on December 31, 2008.

3. Kosciusko Corporation is a manufacturing firm that has $3,600,000 of long-term assets that are used in operations. The following is the acquisition cost, accumulated depreciation, and depreciation expense for each asset through the end of 2009.

Description	Acquisition Cost	Accumulated Depreciation through 2009	Depreciation Expense for 2009
Office Building	$748,000	$230,000	$34,000
Production equipment	$1,072,800	$112,000	$89,400
Office Furniture	$131,500	$61,000	$26,300
Land	$350,000	$0	$0
Delivery trucks	$320,000	$125,000	$40,000

Prepare the PP&E Section of Kosciusko Corporations balance sheet at the end of 2009.

Why has no depreciation expense been recorded on the land owned by Kosciusko?