ne LD 1 Hala Company purchased a eciable asset for 100000 T

ne: LD? 1 . Hala Company purchased a eciable asset for $100,000. The estimated salvage value is $10,000, and the estimated esti used for depreciation. What is the de. The straight-line method will be life is 10 eciation base of this asset? 2. Lebanon Company purchased a depreciable asset for $200,000. The estimated salvage value is $10,000, and the estimated useful life is 10,000 hours. Lebanon used the asset for 1,100 hours in the current year. The activity method will be used for depreciation. What is the depreciation expense on this asset 3. Souq Company purchased a depreciabte asset for s150,000. The estimated salvage value is S10,000, and the estimated useful life is 8 years. The double-declining balance method will be used for depreciation. What is the depreciation expense for the second year on this asset? new machine has an estimated useful life of nine years and the salvage value was estimated to be $75,000. Depreciation was computed on the sum-of-the-years-digits method. What amount should be shown in Samsung\'s balance sheet at December 31, 2015, net of accumulated depreciation, for this machine? 4. On January 1, 2014, Samsung Company purchased a new machine for $2,100,000. The

Solution

1

Depreciation Base =100000-10000=$90000

2

Depreication Base=200000-10000=190000

Depreciation Rate Per hr =190000/10000=19 per Hr

Depreciation Expense =1100*19=$20900

3

Depreciation Base =150000

Depreciation Rate =1/8*2=25%

Derpeciation In Year 1 =150000*25%=37500

Book Value at end of Year 1 =150000-37500=$112500

Derpeciation in year 2 =$112500*25%=$28125

4

Depreciable Base =2100000-75000=2025000

SUm of Year =1+2+3+4+5+6+7+8+9=45

Depreciation in year 1 =1/45*2025000=45000

Depreciation in year 2 =2/45*2025000=90000

Net of Depreciation =2100000-45000-90000=$1965000