Chapter 10 Homework

1. Determining The Cost Of An Asset

Land $402,300
Cash $102,300
Notes Payable $300,000

2. Making a Lump-Sum Asset Purchase

Land $105,000
Building $84,000
Equipment $21,000
Notes Payable $210,000

3. Computing First-Year Depreciation And Book Value

1)
a. $6,400,000
b. $11,200,000
c. $14,800,000
2) Straight-Line Method Book Value: $30,600,000
Units-of-Production Method Book Value: $25,800,000
Double-Declining-Balance Method Book Value: $22,200,000

17. Determining The Cost Of Assets

1) Land = $333,000
Land Improvements = $74,000
Building = $400,000
2) Land Improvements and Building

19. Distinguishing Capital Expenditures From Revenue Expenditures

a) C
b) R
c) C
d) R
e) C
f) C
g) R
h) C
i) C