Chapter 7 Practice.pdf

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Department
Commerce
Course
COMMERCE 1BA3
Professor
Aadil Merali Juma
Semester
Summer

Description
Simba Trailers specializes in assembling containers for trucks They use heavy machinery in an assembly plant with the following history January 1 2007 Bought heavy duty equipment for 100000 with a useful life of 10 years and a salvage value of 10000 September 1 2010 Annual inspection this year indicates that the total useful life of the equipment must be revised to 8 years due to heavy usage and the salvage value reduced to 3000 October 1 2012 Simba Trailers decide to sell this equipment for 40000 cash Required If Simba Trailers used the double declining balance of Depreciation what is the depreciation rate What is the book value of the asset for the year ending December 31 2007 under this method Rate2UL21020 Therefore depreciation for 200420 x 10000020000 Therefore BV1000002000080000For all remaining parts assume Simba Trailers uses the Straight Line method of depreciation 1 What is the depreciation expense and the adjusting entry for the year ending December 31 2007 10000010000109000Depreci
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