Question

Will someone help with this? I also need to show all work

Use the following to answer question 5: Wilson Co. purchased land as a factory site for $900,000. Wilson paid $80,000 to tear down two buildings on the land. Salvage was sold for $5,400. Legal fees of $3,480 were paid for title investigation and making the purchase. Architect's fees were $31,200. Title insurance cost $2,400, and liability insurance during construction cost $2,600. Excavation cost $10,440. The contractor was paid $2,800,000. An assessment made by the city for pavement was $6,400. Interest costs during construction were $170,000. 5. The cost of the land that should be recorded by Wilson Co. is 6. Henry Company purchased a depreciable asset for $240,000. The estimated salvage value is $22,000, and the estimated useful life is 10 years. The straight-line method will be used for depreciation. What is the depreciation base of this asset? 7. Slotkin Products purchased a machine for $39,000 on July 1, 2014. The company intends to depreciate it over 8 years using the double-declining balance method. Salvage value is $3,000. Depreciation for 2014 is 8. Klayton Corporation purchased factory equipment that was installed and put into service January 2, 2014, at a total cost of $120,000. Salvage value was estimated at $8,000. The equipment is being depreciated over four years using the double-declining balance method. For the year 2015, Klayton should record depreciation expense on this equipment of

Answer 1

5)
The cost of the land that should be recorded by Wilson Co. is
Purchased cost of Land	$ 9,00,000.00
Add: Tear Down	$    80,000.00
Less: Salvage	$    -5,400.00
Legal Fees	$      3,480.00
Title Insurance	$      2,400.00
Assessment for pavement:	$      6,400.00
Total Cost of Land	$ 9,86,880.00
6) Henry Company purchased a depreciable asset for $240,000. The estimated salvage value is $22,000, and the estimated useful life is 10 years. The straight-line method will be used for depreciation. What is the depreciation base of this asset?
Depreciation = Cost - SV/Useful life
Depreciation = (240000-22000)/10	$    21,800.00
7) Slotkin Products purchased a machine for $39,000 on July 1, 2014. The company intends to depreciate it over 8 years using the double-declining balance method. Salvage value is $3,000. Depreciation for 2014 to the closest dollar is
Straightline Dep. Rate = 1/8	12.50%
Double declineing rate = 2 x 12.50%	25%
Depreciation = 39000 x 25% x 6/12 months	$      4,875.00
8) Klayton Corporation purchased factory equipment that was installed and put into service January 2, 2014, at a total cost of $120,000. Salvage value was estimated at $8,000. The equipment is being depreciated over four years using the double-declining balance method. For the year 2015, Klayton should record depreciation expense on this equipment of
Straightline Dep. Rate = 1/4	25.00%
Double declineing rate = 2 x 25%	50%
Depreciation 2014 = 120000 x 50%	$    60,000.00
Depreciation 2015 = (120000 -60000) x 50%	$    30,000.00