Chapter 3, Problem 2.2C

Which of the following represents an event that is less routine when accounting for long-term assets? A. recording an asset purchase B. recording depreciation on an asset C. recording accumulated depreciation for an asset or asset category D. changing the estimated useful life of an asset

Using the information from EB7, calculate depreciation using the straight-line method.

All of the following data items are likely to be included in a fixed asset record except: a. residual value of the asset b. book value of the asset c. depreciation method being used d. location of the asset e. all of the above would likely be included

The purpose of the depreciation adjustment is to:   -spread the cost invested in an asset over its useful life. -show the current market value of the asset. -set up a reserve fund for purchasing a new asset. -expense the full amount of the asset in the year purchased.

Why is depreciation expense recognized? Select one: a. To provide a better estimate of the market value of the depreciated assets. b. So that the balance sheet value of plant assets will more accurately reflect the replacement cost of the assets. c. To ensure that cash will be available at the end of the assets' useful life in order to replace it. d. To match the cost of the asset against the revenue using a reasonable allocation. method. Save AnswersNext

Describe the purchase of an item of Property, Plant and Equipment so that your peers can determine depreciation for that first year using both the Straight-Line Method and the Units of Activity Method.  Then describe the sale of that item at the end of it's life so that your peers can determine if there was a gain or loss on disposal. Note please see below as I have included some examples. The information and amounts can be made up but it needs to follow the guidelines above.

Prepare a schedule of depreciation expense, accumulated depreciation, and book value per year for the equipment under the three depreciationmethods: straight-line,units-of-production, and double-declining-balance. Show your computations. Note: Three depreciation schedules must be prepared. Begin by preparing a depreciation schedule using thestraight-line method. Straight-Line Depreciation Schedule         Depreciation for the Year       Asset Depreciable   Useful   Depreciation Accumulated Book Date Cost Cost   Life   Expense Depreciation Value 1-2-2024 $30,000             $30,000 12-31-2024   $24,000 ÷ 4 years = $6,000 $6,000 24,000 12-31-2025   24,000 ÷ 4 years = 6,000 12,000 18,000 12-31-2026   24,000 ÷ 4 years = 6,000 18,000 12,000 12-31-2027   24,000 ÷ 4 years = 6,000 24,000 6,000 Before calculating the units-of-production depreciationschedule, calculate the…

Which of the following disclosures must be included in the notes to the financial statements? the model numbers of each depreciable asset. the methods used in computing depreciation for each major class of depreciable asset. the rate of return on investment for each major class of depreciable asset. all of these choices.

Calculate the total cost, total depreciation, and annual depreciation (in $) for the following assets by using the straight-line method. (Round your answers to the nearest cent.) Cost ShippingCharges SetupCharges TotalCost SalvageValue EstimatedUseful Life(years) TotalDepreciation AnnualDepreciation $76,400 $1,500 $750 $  $4,500 11 $  $