Exercise Content

Complete 10 Problems 10 – 3 A and 10-4A on page 530 using the attached templates. You have two attempts to submit. Highest grade is taken.

Problem 10-4A
Name:
Section:
Score:
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Instructions
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1. a.
Straight-Line Depreciation Schedule
Accumulated
Depreciation
Depreciation,
Expense
End of Year
Year
Book Value,
End of Year
Original cost
1
2
3
4
5
$
800,000
Calculation:
(Cost
–
Year
Double-Declining-Balance Depreciation Schedule
Accumulated
Depreciation
Depreciation,
Book Value,
Expense
End of Year
End of Year
Residual Value)
/
Years
=
Yearly Depreciation
b.
Original cost
1
2
3
4
$
800,000
5
Calculations:
Year
Depreciable
Balance
x
Rate
=
Yearly Depreciation
1
2
3
4
Since depreciation cannot cause book value to fall below residual value:
Year
5
2.
Mar. 4
3.
Mar. 4
Depreciable
Balance
–
Residual
Value
=
Yearly Depreciation
Problem 10-3A
Name:
Section:
Score:
Key Code:
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Instructions
Answers are entered in the cells with gray backgrounds.
Cells with non-gray backgrounds are protected and cannot be edited.
An asterisk (*) will appear to the right of an incorrect entry.
a.
StraightLine
Year
Depreciation Expense
b.
Units-ofActivity
c.
Double-DecliningBalance
Year 1
Year 2
Year 3
Year 4
Totals
Calculations:
Straight-line method:
For full year:
(Cost
−
Residual Value)
/
Years
=
Yearly Depreciation
For part years:
Year 1 Depreciation x Portion of Year
=
Depreciation
Year 4 Depreciation x Portion of Year
=
Depreciation
Units-of-activity method:
(Cost
−
Residual Value)
/
Total Hours
=
Rate
Rate
x
Hours
=
Yearly Depreciation
x
Rate
x
Portion of Year
Year 1
Year 2
Year 3
Year 4
Double-declining-balance method:
Depreciable
Balance
=
Year 1
Year 2
Year 3
Since depreciation cannot cause book value to fall below residual value:
Depreciable
Balance
Year 4
−
Residual
Value
=
Yearly Depreciation
Yearly
Depreciation