1. The Whatever Corp. purchased equipment on March 1, 2013 as follows: Equipment Cost Shipping costs Estimated Salvage Value Estimated Useful Life Life time units of Production $260,000 $10,000 $25,000 10 1,000,000 If the Straight line method is used, (a) what is the depreciation expense as of December 31, 2013 (b) What will be the Depreciation expense for the calendar year 2014? 2. If the Whatever Corp. uses the Double Declining Balance Method, what would the depreciation expense be for the second year (2014) ? 3. If the Whatever Corp uses the Units of Production method, what is the depreciation cost per unit? Calculate to three decimal places 4. If the Whatever Corp. uses the Units of Production method, and they manufactured and sold 400.000 units as of December 31, 2013, what would be the amount of Depreciation Expense that should be recognized for 2013? Sheet1 Sheet2 Sheet3 EW Be careful-files from the Internet can contain VIRUS HIJOU TELU IL U Name: j , K , L. 5. What is the book value of the equipment on January 1, 2014 using the information from (4) above? 6. What is the book value of an asset equal too at the end of it's useful life? It's total cost including freight, assembly and other direct costs incurred Y's Salvage Value It's purchase price Zero 7. The B.S. Law Firm purchased new computers on January 1, 2011 for a total cost of $30 000. The computers have a useful life of 3 years and no salvage value. The straight line depreciation method is used. If on January 1, 2013 it is determined that the computers will be able to be sold for $500 at the end of their useful lives, what would be the depreciation expense recognized in 2013? + 8 The WTF company has a truck that was totalled when a fock of herons ran across the road and the driver slammed on the breaks and skadded into a farmers field and hit two cows and a turkey They need to buy a new truck. The dealer will give them a $1.000 trade in value on the totalled truck they agree to clean the turkey feathers out of the grill They choose to buy a new truck which has a sticker price of $52.000. They pay $20,000 in cash and take out a note for the remaining amount they owe. The totalled truck was originally purchased for $32,000 and has accumulated depreciation of $30.000 Answer the following questions about this situation. BTW: The turkey lived for now! Turkey's useful life ends November 28, 2013 a) What is the gain or loss on the trade-in of the totalled truck? b) What is the amount of the Nate Payable? c) What is the amount the new truck will be recorded at? Produce the jumal try to record this transation Sheet1 Sheet2 Sheets P 9. The Curl up & Dye Hair Salon has died. It must liquidate it's assets. It has a building it must sell that originally cost $150,000 As of the sale date, the accumulated depreciation account had a balance of $40,000. The Luna Sea Tanning Salon agrees to buy the building for $310,000 CASH Produce the journal entry to record this transaction for Curl Up & Dye 10. The Jurassic Pork company has just bought a tract of land on which they plan to raise their pigs. While they were digging a foundation for their new bam, they struck Oil So they sold the pigs and prepared to dnil for oil The land cast them $700,000 and will be worth $300.000 when they are done with They expect to produce 1,000,000 barrels oil over the life of this project. If in the first year they drill and sell 200,000 barrels of oil, what amount of depletion expense will they record? Sheet1 Sheet2 Sheets
