ACCTMIS 2200 Lecture 11: 11. PPE Lab

• School: Ohio State University
• Department: Accounting and Management Info
• Course: ACCTMIS 2200
• Professor: Marc Smith

Document Summary

Asset turnover ratio = net sales revenue/average total assets. Book value = cost of asset - accumulated depreciation. Straight line (cost - residual) / life in years. Units of production (cost - residual) / estimated use = depreciable cost / unit. Depreciable cost / unit * actual usage = depreciation expense (1) depreciation expense per year - double declining. 2016: (20,000 -15,000) - x = 4,000; 1,000. 2017: 0 (2) find appraised value of forklift - uop. Truck: (x - 4000)/100,000 * 17000 = 6290. 41000/250000 = 0. 164 = 16. 4% of total cost. Forklift: 280,000 - (45,920+44,800+105,280) = 84,000 (3) find loss recorded on 10/31/09 - double declining/straight line. 2008: accumulated depreciation(12/31/07) = (37,600+22,560+8,460+6,345) = 74,965 (94,000 + 21,965) = 115,965 new value/cost of equipment. Unit 3 page 1 (94,000 + 21,965) = 115,965 new value/cost of equipment (115,965 - 74,965 - 2000) / (17-4) = 3000 depreciation expense.