Question 1

A building acquired at the beginning of the year at a cost of $1,450,000 has an estimated residual value of $300,000 and an estimated useful life of 10 years.

Determine

(a) The depreciable cost,

(b) The straight-line rate, and

(c) The annual straight-line depreciation.

(d) Net Book Value for the 10^th year using the table method.

Q. Machinery acquired at the beginning of the year at a cost of $150,000 has an estimated residual value of $10,000 and an estimated useful life of 5 years.

Determine

(a) The depreciable cost,

(b) The straight-line rate, and

(c) The annual straight-line depreciation.

(d) Net Book Value for the 4^th year using the table method.

Q . The vehicle acquired at the beginning of the year at a cost of $1,150,000 has an estimated residual value of $100,000 and an estimated useful life of 8 years.

Determine

(a) The depreciable cost,

(b) The straight-line rate, and

(c) The annual straight-line depreciation.

(d) Net Book Value for the 7^th year using the table method.

Question 2

A truck acquired at a cost of $69,000 has an estimated residual value of $12,000, has an estimated useful life of 300,000 miles, and was driven 77,000 miles during the year. The units of activity for each year are given below: Units of Activity:

Years	Unit of Activity
1	50000
2	40000
3	10000
4	200000
5	100000

Determine

(a) The depreciable cost,

(b) The depreciation rate, and

(c) The units-of-activity depreciation for the year.

(d) Net Book Value for all years.