Chapter 16 Long-Term Assets: Fixed and intangible EE 10-2 2.497 PE 10-2B Units-of-activity depreciation OBJ. 2 A tractor acquired at a cost of $420,000 has an estimated residual value of $30,000, has an estimated useful life of 25,000 hours, and was operated 1,850 hours during the year. Determine (a) the depreciable cost, (b) the depreciation rate, and (c) the units-of-activity depreciation for the year. EE 10-3 p.499 PE 10-3A Double-declining-balance depreciation OBJ. 2 A building acquired at the beginning of the year at a cost of $1,375,000 has an estimated residual value of $250,000 and an estimated useful life of 40 years. Determine (a) the double-declining-balance rate and (b) the double-declining-balance depreciation for the first year. EE 10-3 p.499 PE 10-3B Double-declining-balance depreciation OBJ. 2 Equipment acquired at the beginning of the year at a cost of $175,000 has an estimated residual value of $12,000 and an estimated useful life of 10 years. Determine (a) the double- declining-balance rate and (b) the double-declining-balance depreciation for the first year. EE 10-4 p. 502 PE 10-4A Revision of depreciation OBJ. 2 Equipment with a cost of $180,000 has an estimated residual value of $14,400, has an estimated useful life of 16 years, and is depreciated by the straight-line method. (a) Determine the amount of the annual depreciation. (b) Determine the book value at the end of the tenth year of use. (c) Assuming that at the start of the eleventh year the remaining life is estimated to be eight years and the residual value is estimated to be $10,500, determine the depreciation expense for each of the remaining eight years