Accounting

This assignment will help you better understand how costs should be allocated with a lump-sum purchase of land.

1. Download AC216 Unit 3 Assignment 3 – Buying Land Download AC216 Unit 3 Assignment 3 – Buying Land[Excel Spreadsheet]
4. Follow the instructions found in the template
5. Rename your spreadsheet adding your last name to the file name (Ex. AC216 Unit 3 Assignment 3 – Buying Land Name)
8. Submit your completed spreadsheet

This assignment will help you get a better understanding of how different methods of deprecation will affect net income with varying Cost of Goods Sold, and the balance sheet with ending inventory values.

1. Download AC216 Unit 3 Assignment 3 – Depreciation Methods Download AC216 Unit 3 Assignment 3 – Depreciation Methods[Excel Spreadsheet]

Follow the instructions found in the template

2. Rename your spreadsheet adding your last name to the file name (Ex. AC216 Unit 3 Assignment 3 – Depreciation Methods Name)

Submit your completed spreadsheet

This assignment will show you the steps needed to revise amortization schedules when the estimated useful life of a long term assets changes.

1. Download AC216 Unit 3 Assignment 5 – Revise Amortization Download AC216 Unit 3 Assignment 5 – Revise Amortization[Excel Spreadsheet]

Follow the instructions found in the template

2. Rename your spreadsheet adding your last name to the file name (Ex. AC216 Unit 3 Assignment 3 – Revise Amortization Name)

Submit your completed spreadsheet

Revising Depreciation
Odessa Drones Inc has a patent on a specialized drone. The
company has amortized the patent on a straight-line basis for
the past 4 years, when it was acquired at a cost of $10.8
million at the beginning of that year. Due to rapid
technological advances in the industry, management decided
that the patent would benefit the company over a total of six
years rather than the nine-year life being used to amortize its
cost. The decision was made at the beginning of this year.
a.
calculate the current annual amortization
Cost
Current usefule life
Depreciation per year
b.
#DIV/0!
Calculate the Amortiztion to date and unamorrtized balance
Annual amortization
Years in service
Unamortized balance
c.
Calculate the new annual amortization
Unamortized balance
Estimated remaining useful life
New Annual Amortization
d.
Prepare the journal entry for the annual amortization
Debit
Credit
Depreciation methods
Rockport corporation purchased a new piece of equipment on
January 1st of this year. Other information about the machine is
listed in the table below. Note that the actual units produced
exceed the estimate, but the machine cannot be depreciated
below its salvage value
Machine Cost
Useful life
Salvage Value
Total estimated units
Actual units year 1
Actual units year 2
Actual units year 3
Actual units year 4
312,500
5
22,000
514,000
124,500
127,300
119,750
131,250
1 Calculate the Straight line Depreciation
Machine Cost
Salvage Value
Depreciable Basis
Useful life
Deprecation per year
2 Calculate Depreciation using Units of Production
Machine Cost
Salvage Value
Depreciable Basis
Total estimated units
Depreciation per unit
Year
–
Depreciation
per unit
Units
1
2
3
4
Total Depreciation
Annual
depreciation
3 Calculate Depreciation using Double Declining Balance
Straight line deprecation rate
2
double declining balance rate
Year
Begining of year Book value
1
2
3
4
rate
Depreciation Accumlated
Expense
Deprecation