9.On January 1, Bisbee Co. paid $80,000 for a new truck. It was estimated that the truck would be driven 400,000 miles during the next 8 years, at which time it would have a salvage value of $8,000. At the end of the first and second years, the odometer registered 45,000 and 97,000 miles, respectively. Calculate the book value of the truck using straight-line depreciation at the end of the second year.
10.On January 1, Marriott Company paid $80,000 for a copy machine. It was estimated that the machine would produce 200,000 copies over the next 8 years, at which time it would have a salvage value of $8,000. During the first and second years, the copies totaled 24,000 and 51,000, respectively. Calculate accumulated depreciation using the double-declining-balance method at the end of year two.
11.On January 1, Weston Company paid $88,000 for a copy machine. It was estimated that the machine would produce 1,000,000 copies over the next 8 years, at which time it would have a salvage value of $8,000. During the first and second years, the copies totaled 180,000 and 300,000, respectively. Calculate depreciation expense using the activity method for each of the first two years.
12.On January 1, equipment is purchased for $55,000 with an 8-year life expectancy and salvage value of $5,000. If the double-declining-balance method is used, calculate the book value of the equipment at the end of year 2.
13.On January 1, equipment is purchased for $40,000 with an 20-year life expectancy and salvage value of $4,000. If the double-declining-balance method is used, how much depreciation expense is recorded for the first year?
14.On September 30, 2010, equipment is purchased for $50,000 with a 4-year life expectancy and salvage value of $2,000. If the double-declining-balance method is used, calculate depreciation expense for the year ending December 31, 2010.
15.Zack Co. incurred the following costs related to equipment during November 2009.
Purchase equipment for $90,000, terms 3/15, net 45. Paid within 15 day.
Had the equipment installed and paid the installer $2,000.
Paid the freight bill for the truck that delivered the equipment for $1,000.
Advertised a new product that will be produced by the new equipment, $3,400.
Sales taxes paid on the equipment amounted to $3,800.
Calculate the cost of the equipment.
16.Carson Co. purchased a printer for $10,000, for which it paid $1,000 a month for 10 months. Carson had the option of paying $9,500 cash for the printer but chose the delayed payment plan. It cost Carson $80 to transport the printer to its place of business and $200 for installing and initial timing adjustments to the printer. Calculate the cost of the printer.