9.1

Howe Chemicals Company acquires a delivery truck at a cost of $31,000 on January 1, 2014. The truck is expected to have a salvage value of $4,000 at the end of its 4-year useful life. Assuming the declining-balance depreciation rate is double the straight-line rate, compute annual depreciation for the first and second years under the declining-balance method. Annual depreciation under declining-balance method The following expenditures relating to plant assets were made by Watkens Company dunning the first 2 months of 2014. (a) Indicate the account title to which each expenditure should be debited. 1.Paid $7,000 of accrued taxes at the time the plant site was acquired. 2.Paid $200 insurance to cover a possible accident loss on new factory machinery while the machinery was in transit. 3.Paid $850 sales taxes on a new delivery truck. 4.Paid $21,000 for parking lots and driveways on the new plant site. 5.Paid $250 to have the company name and slogan painted on the new delivery truck. 6.Paid $8,000 for installa ion of new factory machinery. 7.Paid $900 for a 1-year accident insurance policy on the new delivery truck 8.Paid $75 motor vehicle license fee on the new truck. Wang Co. has delivery equipment that cost $50,000 and has been depreciated $24,000. Record entries for the disposal under the following assumptions