Computer Processsing Equipments was acquired on January 2 at a cost of $ 125,000. The computer equipment
Question:
Computer Processsing Equipments was acquired on January 2 at a cost of $ 125,000. The computer equipment has an estimated useful life of four years. The estimated residual value is $ 10,000.
Calculate the yearly depreciation, accumulated depreciation and book value for straight line and double declining using the table provided below.
Straight Line | ||||
Cost | Depreciation | Accumulated | Book Value | |
Depreciation | ||||
1 | $125,000 | |||
2 | $125,000 | |||
3 | $125,000 | |||
4 | $125,000 |
Double Declining | ||||
Cost | Depreciation | Accumulated | Book Value | |
Depreciation | ||||
1 | $125,000 | |||
2 | $125,000 | |||
3 | $125,000 | |||
4 | $125,000 |
Devon Oil acquired the rights to various oil reserves at $ 20,000,000 in March 1, 2009. The estimated barrels of oil are 5,000,000 barrels.
(a) Determine the estimated depletion cost per barrel of oil.
(b) If 800,000 barrels are extracted the first year, what is the depletion cost for the first year .
(c) Illustrate or explain the effects on the accounts and financial statements for the
depletion expense .
(a) |
(b) |
(c) |
*Please show all equations/formulas
Intermediate accounting
ISBN: 978-0077647094
7th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson