BE10-1:

Cost of the land:

Land
Cash price $50,000
Accrued taxes 3,000
Attorneys’ fees 2,500
real estate broker’s commission 2,000
clearing and grading 3,500
Cost of land $61,000

BE10-2:
Truck
Cash price $30,000
sales taxes 2,100
painting and lettering 400
Cost of truck $32,500

BE10-3:
a)
Maintenance 45
Cash 45
b)
Truck asset 400
Cash 400
BE10-4:
Annual depreciation expense= 38000-6000/4=$8000
$8000 for both years.
BE10-5:
-to increase net income reported and decrease depreciation expense.
Because land does not suffer depreciation, but building does
-not ethical
BE10-6:

Year
1
Year
2

BE10-7:
depreciation cost = 39500-500= $39000
Depreciation cost per unit = 39000/150000=$0.26
D1=0.26 x 30000= $7.800
D2= 0.26 x 20.000=$5.200
BE10-8:
Annual depreciation cost= (32000-2000-9000)/4=$5250
BE10-9:
Accumulated 41000
depreciation -
quipment
Equipment 41000

Accumulated 37000
depreciation -
equipment
Loss on disposal of 4000
equipment asset
Equipment 41000
BE10-10:
2017
Sep 30
Depreciation expenses 5250
Cash 5250

Cash 18000
Accumulated 17250
depreciation -
equipment
Loss on disposal of 6750
plant assets
equipment 42000

BE10-15:

Equipment (new) 29000

Accumulated 30000
Depreciation (old)
Loss 7000
Equipment (old) 61000
Cash 5000