ACCT 304 Study Guide - Final Guide: Serializability
Document Summary
Chapter 11 practice: on march 20, 2018, foley co. purchased machinery for ,000. The machinery will be depreciated over 7 years and is expected to produce 10,000 units. Calculate depreciation expense for the first 2 years on this machinery using each of the following methods: double-declining balance. 2018: (,000 - sh) * 2/7 = ,286 * 9/12 = ,714. 2019: (,000 - ,714) * 2/7 = ,796. 2020: (,000 - ,510) * 2/7 = ,140: sum-of-the-years"-digits. 2018: (,000 - ,000) * 7/28 = ,500 * 9/12 = ,625. 2019: (,000 - ,000) * 6. 25/28 = ,125. 2020: (,000 - ,000) * 5. 25/28 = ,625. Acct 304: klein co. purchased machinery on january 2, 2012, for ,000. The straight-line method is used and useful life is estimated to be 10 years, with a ,000 salvage value. At the beginning of 2018 klein spent ,000 to overhaul the machinery.
