PROBLEM 1.

PAKO COMPANY
1 Beg. Balance 1,800,000
Purch. of 4 machines 1,080,000
Installation of 4 machines 48,000
Cost of old machine (150,000)
Cost of traded machine (90,000)
Cost of new machine from trade 270,000
Ending Balance 2,958,000

2 Depreciation of machineries included in beginning balance but not sold

Beg. Balance 1,800,000
Cost of sold and trade machines (240,000)
Balance 1,560,000
Depreciation Rate 10%
Depreciation 156,000

Depreciation of Sold Machine

Cost 150,000
Depreciation rate 10%
Annual Depreciation 15,000
Up to Sept. 30 3/4
Derpeciation 11,250

Depreciation of Traded Machine

Cost 90,000
Depreciation rate 10%
Annual Depreciation 9,000
Up to Dec. 1 11/12
Depreciation 8,250

Depreciation of Four New Machines

Cost 1,128,000
Depreciation Rate 10%
Annual Depreciation 112,800
From June 30 to Dec. 31 1/2
Depreciation 56,400

Depreciation of New Machine from Trade

Cost 270,000
Depreciation Rate 10%
Annual Depreciation 27,000
From Dec. 1 to Dec 31 1/12
Depreciation 2,250
Total Depreciation 234,150
PROBLEM 2. BROMPLEY COMPANY

LAND BUILDING MACHINERY&EQUIPMENT

Beg. Balance 100,000 300,000 500,000
Item I 74,000 - -
Item I 50,000 150,000 -
Item II - - 153,000
Item III - - -
Item IV - - (20,000)
Item V 23,000 78,000 -
Item VI - - 32,000
Adjusted Balance 247,000 528,000 665,000

PROBLEM 3 PUTI CORPORATION

LAND LAND MACHINERY & BUILDING
IMPROVEMENTS EQUIPMENT

Purchase of Land 10,000,000 - - -

Mortgage assumed
Relocate Squatters
Tearing down old bulding
Recovered from salvage
Cost of Fencing
Paid to Contractor
Building Permit
Excavation
Architect's fee
Invoice cost of machinery
Freight and other charges
Customs duties
Paid to foreign technicians
Reaaltor's Commission
Legal fees
Ending Balance
16,000,000 - - -
400,000 - - -
- - - 300,000
- - - -600,000
- 440,000 - -
- - - 8,000,000
- - - 50,000
- - - 250,000
- - - 100,000
- - 8,000,000 -
- - 240,000 -
- - 560,000 -
- - 1,600,000 -
1,200,000 - - -
200,000 - - -
27,800,000 440,000 10,400,000 8,100,000
PROBLEM 4 HONEST
1 Wasting Asset 5,200,000
Estimated tons of Silver 4,000,000
Depletion Rate 1.30
Mined Silver 5,000
Depletion 6,500

2 Wasting Asset 2005 5,468,500

Adjusted Estimate 6,995,000
Depletion Rate 0.78
Mined Silver 1,000,000
Depletion 2005 780,000

Wasting Asset 2006 5,788,500

Estimate tons of silver 5,995,000
Depletion Rate 0.97
Mined Silver 2,500,000
Depletion 2006 2,425,000

3 Depreciable amount of Building 1,473,437.5

Estimated tons of Silver 6,995,000
Depreciation Rate 0.21
Mined Silver 1,000,000
Depreciation 2005 210,000

Depreciable amount of Building 1,263,438

Estimated tons of Silver 5,995,000
Depreciation Rate 0.21
Mined Silver 2,500,000
Depreciation 2005 525,000