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Could you please tell me something about the error? Problem 9.3A Issues involving Alternative Depreciation Methods L.O. 1-3,5 Smart Hardware purchased new shelving for its
Could you please tell me something about the error?
Problem 9.3A Issues involving Alternative Depreciation Methods L.O. 1-3,5 Smart Hardware purchased new shelving for its store on April 1, 2013. The shelving is expected to have a 20-year life and no residual value. Smart Hardware adopts the cost model as its accounting policy in subsequently measuring its property, plant, and equipment. The following expenditures were associated with the purchase: Cost of the shelving Freight charges Sales taxes Installation of shelving Cost to repair shelf damaged during installation $120,000 5,200 7,800 27,000 4.000 a-1. Compute depreciation expense for the years 2013 through 2016, using the straight-line method with fractional years rounded to the nearest whole month. (Omit the "$" sign in your response.) Year 2013 2014 Depreciation expense $ 1,950 2,600 2,600 2,600 2015 2016 a-2. Compute depreciation expense for the years 2013 through 2016, using the 200 percent declining- balance, using the half-year convention. (Omit the "S" sign in your response.) Year 2013 2014 2015 2016 Depreciation expense $ 2,600 4,940 4,446 4,001 a-3. Compute depreciation expense for the years 2013 through 2016, using the 150 percent declining- balance, using the half-year convention. (Omit the "$" sign in your response.) Year 2013 2014 2015 2016 Depreciation expense $ 1,950 3,754 3,472 3,212 C-1. Which of the depreciation methods applied in part a resulted in the lowest reported book value at the end of 2016? Straight-line method of depreciation C-2. Is book value an estimate of an asset's fair value? No d-1. Assume that Smart Hardware sold the old shelving that was being replaced. The old shelving had originally cost $90,000. Its book value at the time of the sale was $4000. Record the sale of the old shelving was sold for $12,000 cash. (Omit the "$" sign in your response.) General Journal Credit Debit 12,000 Cash 86,000 Accumulated depreciation: Shelving 90,000 Shelving 8,000 Gain on sale of assets 3 d-2. Assume that Smart Hardware sold the old shelving book value $ originally cost $90,000. Its book value at the time shelving was sold for $2,000 cash. (Omit the "$": Ait] km had he old General Journal Credit Debit 2,000 Cash Accumulated depreciation: Shelving 86,000 2,000 Loss on sale of asset Shelving 90,000Step by Step Solution
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