BUS4060 – u08a1 Solution
Problem 8-5A
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Year
Straight-line
Units-of-Production
Declining-Balance
1
47500
47346
4
47500
47736
3
47500
46644
4
47500
44640
6250
Totals
190000
Please show all calculations in this area:
Problem 8-6A
1. Debit Credit
Jan. 2
Jan. 3
Jan. 3
2. a. First year
Dec. 31
b. Fifth year
Dec. 31
3. Accumulated depreciation at the date of disposal
Book value at the date of disposal
a. Sold for $13,500 cash Debit Credit
Dec. 31
b. Sold for $45,000 cash
Dec. 31
c. Destroyed in fire and collected $24,000 cash from insurance co.
Dec. 31
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