Homework Answers
|
1a |
What is the amount of depreciation for year one? |
|||
|
Component |
cost |
Years |
Depreciation |
|
|
A |
110000 |
5 years |
22000 |
|
|
B |
165000 |
10 years |
16500 |
|
|
C |
275000 |
25 years |
11000 |
|
|
550000 |
49500 |
|||
1b.
|
Particular |
Debit |
credit |
|
Depreciation expense |
49500 |
|
|
Accumulated depreciation |
49500 |
2a what is the value of componenet A at the end of 4th year
cost of component A – depreciation for 4 years
110000- (22000*4 years) =22000
2b. The major spare part had cost of $130,000
|
Accumulated depreciation |
88000 |
|
|
Loss on replacement |
22000 |
|
|
Equipment component A |
110000 |
|
|
Particular |
Debit |
credit |
|
Equipment component A |
130000 |
|
|
cash |
130000 |
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