BE 9-1 Straight-line depreciation Obj. 2 A building acquired at the beginning of the year at a cost of $2,200,000 has an estimated residual value of $400,000 and an estimated useful life of 20 years. Determine (a) the depreciable cost (b) the straight-line rate, and (c) the annual straight-line depreciation. BE 9-2 Units-of-activity depreciation Obj. 2 A truck acquired at a cost of $80,000 has an estimated residual value of $8,000, has an estimatec useful life of 200,000 miles, and was driven 18,000 miles during the year. Determine (a) the depre ciable cost, (b) the depreciation rate, and (c) the units-of-activity depreciation for the year. BE 9-3 Double-declining-balance depreciation Obj. A building acquired at the beginning of the year at a cost of $3,585,000 has an estimated residua value of $125,000 and an estimated useful life of 50 years. Determine (a) the double-declining balance rate and (b) the double-declining balance depreciation for the first year. BE 9-4 Revision of depreciation Obj.: Equipment with a cost of $240,000 has an estimated residual value of $18,600, has an estimatec useful life of 12 years, and is depreciated by the straight-line method. (a) Determine the amoun of the annual depreciation. (b) Determine the book value at the end of the tenth year of use (C) Assuming that at the start of the eleventh year the remaining life is estimated to be four year: and the residual value is estimated to be $4,800, determine the depreciation expense for each o the remaining four years. BE 9-5 Capital and revenue expenditures Obj.: On February 14, Garcia Associates Co. paid $2,300 to repair the transmission on one of its deliver vans. In addition, Garcia paid $450 to install a GPS system in its van. Journalize the entries fo the transmission and GPS system. BE 9-6 Sale of equipment Obj. : Equipment was acquired at the beginning of the year at a cost of $600,000. The equipment wa depreciated using the double-declining-balance method based on an estimated useful life of 10 years and an estimated residual value of $60,000. a. What was the depreciation for the first year? b. Assuming the equipment was sold at the end of the second year for $480,000, determine th gain or loss on the sale of the equipment. c. Journalize the entry on December 31 to record the sale