Me equipment's life. Butters has a December 31 fiscal year end. BE9-6 Refer to the data given for Butters Company in BE9-5. Assume instead that the company uses the diminishing-balance method and that the diminishing-balance depreciation rate is double the straight line rate. Calculate the depreciation expense (a) for each year of the equipment's life, and (b) in total over the equipment's life. Calculate diminishing- balance depreciation. (SO 2) AP BE9-7 Speedy Taxi Service uses the units-of-production method in calculating depreciation on its taxicabs. Calculate units-of- Each cab is expected to be driven 550,000 km. Taxi 10 cost $38,950 and is expected to have a residual value production depreciation. of $4,300. Taxi 10 is driven 90,000 km in 2013, and 135,000 km in 2014. Calculate (a) the depreciable cost (SO 2) AP per kilometre (use three decimals), and (b) the depreciation expense for 2013 and 2014. BE9-8 Refer to the data given for Butters Company in BE9-5. Assume the equipment was purchased on April 6, 2014, and that the company pro-rates depreciation to the nearest month. Using the straight-line method, calculate the depreciation expense (a) for each year of the equipment's life, and (b) in total over the equipment's life. Calculate partial-year straight-line depreciation. (SO 2) AP company uses the straight-line method of depreciation. Calculate the depreciation expense (a) for each year of the equipment's life, and (b) in total over the equipment's life. Butters has a December 31 fiscal year end. BE9-6 Refer to the data given for Butters Company in BE9-5. Assume instead that the company uses the diminishing-balance method and that the diminishing-balance depreciation rate is double the straight line rate. Calculate the depreciation expense (a) for each year of the equipment's life, and (b) in total over the equipment's life. BE9-7 Speedy Taxi Service uses the units-of-production method in calculating depreciation on its taxicabs. Each cab is expected to be driven 550,000 km. Taxi 10 cost $38,950 and is expected to have a residual value of $4,300. Taxi 10 is driven 90,000 km in 2013, and 135,000 km in 2014. Calculate (a) the depreciable cost per kilometre (use three decimals), and (b) the depreciation expense for 2013 and 2014. BE9-8 Refer to the data given for Butters Company in BE9-5. Assume the equipment was purchased on April 6, 2014, and that the company pro-rates depreciation to the nearest month. Using the straight-line method, calculate the depreciation expense (a) for each year of the equipment's life, and (b) in total over the equipment's life. Calculate diminishing- balance depreciation. (SO 2) AP Calculate units-of- production depreciation. (SO 2) AP Calculate partial-year straight-line depreciation. (SO 2) AP 1 Chapter 9-Long-Lived Assets Lesson 1-Property, Plant and Equipment-Text p. 380-383 Lesson 1-Learning Goals: Students can define Property, Plant and Equipment and know common terms used for PPE Students know the 4 common classes of PPE on the Balance Sheet: Land, Land Improvements, Buildings, Equipment (which can include vehicles) Students understand the difference between an operating and a capital expenditure Cost of PPE -Students are familiar with common costs included when recording/recognizing each of: Land, Land Improvements, Buildings, Equipment Students know how to allocate costs across items in a basket purchase or an allocation to significant components of an asset. Balance Sheet (Statement of Financial Position) Current Assets (Used or converted to cash within 1 year) Bank, A/R, Inventory, Prepaids, Supplies Non-Current Assets Long-Term Investments Property Plant and Equipment Intangibles Goodwill (an intangible which must be disclosed separately) Other Names, Terminology: I Some companies combine PPE and Intangibles under 1 heading called "Capital Assets" or "Fixed Assets" or "Long-Term Assets" Definition of PPE PPE are long-lived assets that the company owns and uses for the production and sale of hp