Intermediate Accounting I ACCT310
I worked on some of these questions, but I'm not sure if they are correct. I need assistance with #1,3, and 7.
University of Maryland University College Intermediate Accounting I ACCT310 Exercises 1. Wasatch Bank recently held an auction to dispose of various assets it had obtained through foreclosures and other loan settlements. Representatives of Aragon Semi-Conductors attended the auction to bid on an abandoned manufacturing plant that Wasatch Bank included in the sale. The auction brochure listed the manufacturing plant as including all land, buildings and equipment. The brochure indicated that an independent appraisal had been conducted and that land was separately valued at $3,500,000, the building at $8,000,000 and the equipment at $14,500,000. This information is believed to be reasonably accurate and fair. Aragon Semi Conductors wanted the site for a recycling business it planned to start at the location. All of the equipment would be used in this new operation. The minimum bid price was set at $16,250,000. As it turned out, the auction was poorly attended. Aragon was the only bidder on this property, and was fortunate to acquire the property at the opening bid minimum. Required: Determine the correct cost allocation to the land, buildings and equipment. 2. Robert Smith Company purchased a new machine for its assembly process on June 1, 2015. The cost of this machine was $122,000. The company estimated that the machine would have a salvage value of $12,000 at the end of its service life. Its life is estimated at 5 years. Required: Compute the depreciation expense under the following methods: 1) Straight-line method 2) Sum-of-the-years-digits 3) Double declining balance Straight line method  depreciation per year = 122000 - 12000 / 5 year 4) =22000 year Depreciation 2015 22000 * 7/12 months =$12833 5) 2016 to 2019 year 22000 per year 6) sum of the digit 7) Year depreciaiton factor depreciation 8) 2015 5/15 110000 *5/15 = 36667 9) 2016 4/15 110000*4/15 =29333 10) 2017 3/15 110000*3/15 =22000 11) 2018 2/15 110000 * 2/15 =14667 Page 1 of 4
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Posted 09 Dec 2017 08:12 AM
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