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Assets and Depreciation Worksheet Part Acquisition Cost On August 21, Oldham Industries bought 100 acres of land order to expand its operations The purchase price was $375,000. addition, Oldham paid $30,000 taxes and fees, $27,000 remove two existing buildings, and $50,000 grade and fi the land before could beused Oldham sold materials salvaged from the two buildings for $25,000. Calculate the amount that Oldham would record as the cost of the land and prepare the journal entry to record the purchase. Enter your answers in the shaded boxes. General Journal Date Account Names Debit Credit Aug To record purchase of land. Part Hickman Labs for plant on January for $80,000. The equipment has an usefu and an estimated salvage value of $20,000. It is expected produce units The equipment produces 18,000 and 21,000 unitsinits first and second years operation Complete the following items. Enter your answers in the shaded boxes. a. What the depreciation expense for the first two years using the Straight -line method? Year Year b. What the depreciation expense for the first two years using the double dedining-balance method? Hint: Depreciation Expense (Straight Line Rate of Depreciation 21: Net Book Value Year 1 Year 2 c. What the per unit depreciation expense using the units- of- activity method? Hint: The Depreciation Expense per Unit (Cost Salvage Value), Useful Life in Units Page 2 d. What the depreciation expense for the first two years using the units- of activity method? Hint: Depreciation Expense Depreciation Expense per Unit x Actual Units of Activity Year Year 2 Part Depreciation Expense On January Merida Company pays topurchase machinery that will be used in its production fadility. The company believes the equipment will have useful life of vears and estimates the equipment salvage value to be $25,000. Complete the following problems related to this purchase. Enter your answers in the shaded boxes. a. What the annual depreciation expense using the straight Hine method? b. Prepare depreciation schedule showing the depreciation expense and net book value for the four years using the Straight- -line depreciation method Year Depreciation Expense Accumulated Net Book Value Depreciation $0 $125,000 2013 2014 2015 2016 c. What the rate of depreciation using the double dedining balance method? d. Prepare depreciation schedule showing the depreciation expense and net book value for the four years using the double declining balance depreciation method. Year Accumulated Depreciation Expense Net Book Value Deprec ation $0 $125,000 2013 2014 2015 2016 Page Part purchased for $145,000, with accumulated depredation of Industries on April 23. sale of the machinery ifit sells it for $59,000 0 $68,000 cash. Sale Amount Gain or Gain Loss Amount Loss? b. Prepare the for each scenario 1. $59,000 sale entry: General Journal Date Account Names Debit Apr 000 entry General Journal Date Account Debit Credit Page 4 toa song for on January 1, 2013. copyright use the song to market its services years. of the copyright on January 2013, and its annual Hint: expense based on the shorter of the General Journal Account Names Debit Credit General Journal Account Names Credit

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