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P11-3 (DepreciationSYD, Act., SL, and DDB) The following data relate to the Plant Assets account of Eshkol, Inc. at December 31, 2010. A B C
P11-3 (DepreciationSYD, Act., SL, and DDB) The following data relate to the Plant Assets account of Eshkol, Inc. at December 31, 2010. A B C D Original Cost$46,000.00 $51,000.00 $80,000.00 80,000.00 Year Purchased 2005 2006 2007 2009 Useful Life 10 years 15 hours 15 years 10 years Salvage value 3100 3000 5000 5000 Depreciation Method 2005-Sum of the years digit 2006-Activity 2007-Straight Line 2008- DDB Accum. Depr. through 2010 $31,200 $35,200 $15,000 $16,000 *In the year an asset is purchased, Eshkol, Inc. does not record any depreciation expense on the asset. In the year an asset is retired or traded in, Eshkol, Inc. takes a full years depreciation on the asset. The following transactions occurred during 2011. (a) On May 5, Asset A was sold for $13,000 cash. The companys bookkeeper recorded this retirement in the following manner in the cash receipts journal. Cash 13,000 Asset A 13,000 (b) On December 31, it was determined that Asset B had been used 2,100 hours during 2011. (c) On December 31, before computing depreciation expense on Asset C, the management of Eshkol, Inc. decided the useful life remaining from January 1, 2011, was 10 years. (d) On December 31, it was discovered that a plant asset purchased in 2010 had been expensed com- pletely in that year. This asset cost $28,000 and has a useful life of 10 years and no salvage value. Management has decided to use the double-declining-balance method for this asset, which can be referred to as Asset E
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