Shopping Cart
0 items

Problem 11-1 (P11-1) Depreciation Method

Problem 11-1 (P11-1) Depreciation Method
Click to enlarge
Price: $8.99
Availability: In Stock
Model: A
Average Rating: 5 out of 5 Stars!


Solution Guide / Answer Key:


Intermediate Accounting

Problem 11-1 (P11-1) Depreciation Method

The Winsey Company purchased equipment on January 2, 2010, for $700,000. The equipment has the following characteristics:
Estimated service life 20 years 100,000 hours 950,000 units of output
Estimated residual value $50,000
During 2010 and 2011, the company used the machine for 4,500 and 5,500 hours respectively and purchased 40,000 and 60,000 units respectively. Compute he depreciation for 2010 and 2011 under each of the following methods:
1. Single-line
2. Hours worked
3. Units of output
4. Sum-of-the-years-digits
5. Double-declining-balance
6. 150%-declining-balance
7. Compute the company’s return on assets (net income divided by average total assets, as discussed in chapter 6) for each method for 2010 and 2011, assuming that income before depreciation is$100,000. For simplicity, use ending assets, and ignore interest, income taxes , and other assets.



Write Review
Your Name:

Your Review: Note: HTML is not translated!

Rating: Bad            Good

Enter the code in the box below:

There are no additional images for this product.