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answers for 10-5 and 10 -6 2. Paid $400 1 truck Prepare Flaherty's journal entries to record these two transactions. BE10-4 Corales Company acquires a
answers for 10-5 and 10-6
2. Paid $400 1 truck Prepare Flaherty's journal entries to record these two transactions. BE10-4 Corales Company acquires a delivery truck at a cost of $38,000. The truck is expected to have a salvage value of $6,000 at the end of its 4-year useful life. Compute annual depreciation expense for the first and second years using the straight-line method BE10-5 Chisenhall Company purchased land and a building on January 1, 2017. Manage- nd ment's best estimate of the value of the land was $100,000 and of the building $200,000. However, management told the accounting department to record the land at $220,000 and the building at $80,000. The building is being depreciated on a straight-line basis over 15 years with no salvage value. Why do you suppose management requested this account- ing treatment? Is it ethical? BE10-6 Depreciation information for Corales Company is given in BE104. Assuming the declining-balance depreciation rate is double the straight-line rate, compute annual depre- ciation for the first and second years under the declining-balance method. nceStep by Step Solution
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