635
Problem 10-3A (45 minutes)
Part 1
Land
Building
2
Building
3
Land
Improve-
ments 1
Land
Improvements
2
_______
$164,000
*Allocation of purchase price
Appraised
Value
Apportioned
Cost**
Part 2
2017
5,469,800
Part 3
2017
Dec. 31
Depreciation Expense—Building 2 …………………………
26,900
Depreciation Expense—Building 3 …………………………
72,400
Depreciation Expense—Land Improv. 1 ………………….
32,500
Depreciation Expense—Land Improv. 2 ………………….
636
Problem 10-4A (50 minutes)
2016
Jan. 1
Equipment ……………………………………………………….
300,600
300,600
Equipment ……………………………………………………….
2017
Jan. 1
Equipment ……………………………………………………….
637
Problem 10-5A (40 minutes)
2016
2018
638
Problem 10-6A (20 minutes)
1.
2. a. First year
3. Accumulated depreciation at the date of disposal
639
Problem 10-7A (20 minutes)
a.
d.
Analysis Component
640
Problem 10-8A (20 minutes)
1.
2017
(a)
(c)
2.
2017
(a)
(c)
Wild, Shaw, Chiappetta, FAP 23e Solutions Manual: Chapter 10
641
PROBLEM SET B
Problem 10-1B (50 minutes)
Part 1
Estimated
Market Value
Percent
of Total
Apportioned
Cost
Part 2
Part 3
deferred tax amounts for investment purposes until they are due.]
642
Problem 10-2B (25 minutes)
bUnits-of-production:
Cost per unit = $294,000/1,470,000 units = $0.20 per unit
Year
Units
Depreciation
1 …………..
355,600
$ 71,120
3 …………..
317,000
4 …………..
343,600
cDouble-declining-balance (amounts rounded to the nearest dollar):
207,360
282,010
28,500
Depreciation Expense—Building C ………………………
60,000
60,000
31,000
31,000
10,350
10,350
Problem 10-3B (45 minutes)
Part 1
Land
Building
B
Building
C
Land
Improve-
ments B
Land
Improve-
ments C
*Allocation of
purchase price
Appraised
Value
Percent
of Total
Apportioned
Cost
Land …………………………………..
$ 795,200
56%
$ 868,000
Building B …………………………..
142,000
155,000
Part 2
2017
Part 3
2017
Dec. 31
Depreciation Expense—Building B …………………………..
28,500
644
Problem 10-4B (50 minutes)
2016
1,850
1,850
Dec. 31
Depreciation Expense—Equipment ………………………
5,124
2017
2,064
2,064
Repairs Expense—Equipment ……………………………..
Dec. 31
Depreciation Expense—Equipment ………………………
3,760*
3,760
645
Problem 10-5B (40 minutes)
2016
Jan. 1
Machinery ……………………………………………………….
114,270
114,270
Depreciation Expense—Machinery ……………………….
17,425
17,425
2017
Dec. 31
Depreciation Expense—Machinery ……………………….
27,500*
27,500
2018
Dec. 31
Depreciation Expense—Machinery ……………………….
27,500
27,500
Accumulated Depreciation—Machinery ………………..
646
Problem 10-6B (20 minutes)
1.
Jan. 1
Machinery …………………………………………………………
150,000
150,000
Jan. 2
Machinery …………………………………………………………
Jan. 4
Machinery …………………………………………………………
2. a. First year
Dec. 31
Depreciation Expense—Machinery ……………………….
20,000
Dec. 31
Depreciation Expense—Machinery ……………………….
20,000
20,000
3. Accumulated depreciation at the date of disposal
28,000
10,110
Accumulated Depreciation—Machinery ………………..
120,000
158,110
52,000
Accumulated Depreciation—Machinery ………………..
120,000
158,110
13,890
25,000
13,110
Accumulated Depreciation—Machinery ………………..
120,000