Straight-Line Depreciation Rates Convert each of the following estimates of useful life to a straight-line depreciation rate, stated as a percentage: (a) 10 years, (b) 8 years, (c) 25 years, (d) 40 years, (e) 5 years, (f) 4 years, (g) 20 years. If required, round your answers to one decimal place. Years Percentage a. 10 years % b. 8 years % % C. 25 years % d. 40 years 5 years % f. 4 years % 9. 20 years % Straight-Line Depreciation A refrigerator used by a wholesale warehouse has a cost of $66,700, an estimated residual value of $5,100, and an estimated useful life of 14 years. What is the amount of the annual depreciation computed by the straight-line method? $ Depreciation by Units-of-Activity Depreciation A diesel-powered tractor with a cost of $374,300 and estimated residual value of $5,300 is expected to have a useful operating life of 90,000 hours. During November, the tractor was operated 100 hours. Determine the depreciation for the month. Carry out any division to two decimal places. Depreciation by Units-of-activity Method Prior to adjustment at the end of the year, the balance in Trucks is $436,600 and the balance in Accumulated Depreciation-Trucks is $133,120. Details of the subsidiary ledger are as follows: Truck Estimated Residual Estimated Accumulated Depreciation No. Cost Value Useful Life at Beginning of Year Miles Operated During Year 1 $86,000 $12,900 240,000 miles 36,000 miles 2 118,100 14,172 320,000 $23,620 32,000 3 105,000 4 127,500 14,700 15,300 212,000 320,000 84,000 25,500 21,200 38,400 a. Determine for each truck the depreciation rate per mile and the amount to be credited to the accumulated depreciation section of each subsidiary account for the miles operated during the current year. Keep in mind that the depreciation taken cannot reduce the book value of the truck below its residual value. Round the rate per mile to two decimal places. Truck No. Rate per Mile (in cents) Miles Operated Credit to Accumulated Depreciation 1 $ 36,000 $ 2 32,000 3 21,200 4 38,400 Total b. Journalize the entry on December 31 to record depreciation for the year. If an amount box does not require an entry, leave it blank. Depreciation by Two Methods A computer system acquired on January 1 at a cost of $153,000 has an estimated useful life of ten years. Assuming that it will have no residual value. a. Determine the depreciation for each of the first two years by the straight-line method. First Year Second Year b. Determine the depreciation for each of the first two years by the double-declining-balance method. Do not round the double-declining balance rate. If required, round your final answers to the nearest dollar. First Year Second Year Depreciation by Two Methods A storage tank acquired at the beginning of the fiscal year at a cost of $95,000 has an estimated residual value of $5,000 and an estimated useful life of 25 years. a. Determine the amount of annual depreciation by the straight-line method. b. Determine the amount of depreciation for the first and second years computed by the double-declining-balance method. Do not round the double-declining balance rate. If required, round your answers to the nearest dollar. Depreciation Year 1 Year 2 $ $ Partial-Year Depreciation Equipment acquired at a cost of $96,000 has an estimated residual value of $6,000 and an estimated useful life of 10 years. It was placed into service on October 1 of the current fiscal year, which ends on December 31. If necessary, round your answers to the nearest cent. a. Determine the depreciation for the current fiscal year and for the following fiscal year by the straight-line method. Depreciation Year 1 Year 2 b. Determine the depreciation for the current fiscal year and for the following fiscal year by the double-declining-balance method. Depreciation Year 1 Year 2 Depletion Entries Backwoods Mining Co. acquired mineral rights for $9,922,000. The mineral deposit is estimated at 45,100,000 tons. During the current year, 6,750,000 tons were mined and sold. a. Determine the amount of depletion expense for the current year. Round the depletion rate to two decimal places. b. Journalize the adjusting entry on December 31 to recognize the depletion expense. If an amount box does not require an entry, leave it blank. Amortization Entries Kleen Company acquired patent rights on January 10 of Year 1 for $400,000. The patent has a useful life equal to its legal life of eight years. On January 7 of Year 4, Kleen successfully defended the patent in a lawsuit at a cost of $20,000. If required, round your answers to the nearest dollar. a. Determine the patent amortization expense for Year 4 ended December 31. b. Journalize the adjusting entry on December 31 of Year 4 to recognize the amortization. If an amount box does not require an entry, leave it blank