Student Name:
Class:
4,200,000$
4,200,000$
Correct!
2,400,000$
16,000$
10,000 6,000
6,400
1,850
1,150
50,400
32,000
2,497,800$
Correct!
125,000$
125,700
250,700$
Correct!
McGraw-Hill
Instructor
Cost of land improvements
3. Land Improvements
Cost of land
Permit to raze facility
Inspection fees
Attorney fees
Less salvage
Construction and paving of parking lot
Paving of sidewalks and curbs
Leveling of site
Purchase of fill dirt
Problem 18.01A
Demolition of building
Purchase of land
Capitalization Costs
HARRIS COMPANY
Construction of manufacturing plant
2. Land
Cost of manufacturing plant
1. Manufacturing Plant:
2,400,000$
16,000$
200,000$
10,000$
6,400$
1,850$
1,150$
50,400$
32,000$
125,000$
4,200,000$
125,700$
Cost of site for new Manufacturing plant on January 6, 2013
Additional costs:
Amount received from salvage of facility razed
Fair market value of facility razed
Cost to raze existing facility
HARRIS COMPANY
Given Data P18.01A
Cost of paving parking area
Building cost of new facility
Paving of sidewalks and curbs
Leveling of site
Fill dirt for site
Permit to raze facility
Inspection fees
Attorney fees
Student Name:
Class:
Acquisition Salvage Useful Life Annual Accumulated
Year Cost Value in Years Depreciation Depreciation
1550,000$ 50,000$ 4 125,000$ 125,000$
2550,000 50,000 4 125,000 250,000
3550,000 50,000 4 125,000 375,000$
Correct!
Cost Less Annual Accumulated
Year Fraction Salvage Depreciation Depreciation
10.40 500,000$ 200,000 200,000$
20.30 500,000 150,000 350,000
Year Book Value Rate Depreciation Depreciation
McGraw-Hill
Instructor
Problem 18.02A
550,000$
January 4, 2013
4
50,000$
Given Data P18.02A
ILLINOIS COMPANY
Salvage value
Useful life in years
Date Purchased
Cost of new equipment
Student Name:
Class:
Acquisition Salvage Useful Life Annual Accumulated
Year Cost Value in Years Depreciation Depreciation
2013 560,000$ 20,000 5 108,000 108,000$
2014 560,000 20,000 5 108,000 216,000
2015 560,000 20,000 5 108,000 324,000$
Correct!
Total Expected
Actual
Acquisition Salvage Units of Units of Cost Annual Accumulated
Year Cost Value Production Production per Unit Depreciation Depreciation
2013 560,000$ 20,000$ 200,000 40,000 2.70$ 108,000 108,000$
2014 560,000 20,000 200,000 56,000 2.70 151,200 259,200
2015 560,000 20,000 200,000 46,000 2.70 124,200 383,400$
Correct!
Instructor
Sum-of-the-Years’-Digits Method
HALL COMPANY
Depreciation Calculations
Straight-Line Method
Problem 18.03A
McGraw-Hill
$260,000
January 5, 2013
5
200,000
$20,000
40,000
56,000
46,000
Date Purchased
Cost of new equipment
Given Data P18.03A
HALL COMPANY
Salvage value
Useful life in units of production
Useful life in years
2015 units produced
2014 units produced
2013 units produced
Actual production data: