会计学第10章答案

Chapter 10 Accounting for Plant Assets and Intangibles

Multiple Choice Quiz

1. b

Land: $326,000×[175,000÷(175,000＋70,000＋105,000)]＝326,000×50%＝$163,000

Land Improvements: $326,000×70,000/350,000＝$326,000×20%＝$65,200

Building: $326,000×105,000/350,000＝$326,000×30%＝$97,800

2. c

(35,000－1,000)÷4＝$8,500

3. c

Depreciation for the year 2013: $10,800,000×20%＝$2,160,000

Depreciation for the year 2014: $(10,800,000－2,160,000)×20%＝$1,728,000

4. c

Book value $150,000 (250,000－100,000) , vs. selling price $120,000

Quick Study

QS 10-2

The total recorded cost of the automatic scorekeeping equipment:

$190,000＋20,000＋4,000＋13,700＝$227,700

QS 9-3

$(65,800－2,000)÷4＝$15,950

QS 10-4

Depreciation for per concert: $(65,800－2,000)÷200＝$319

Depreciation for the year 2013: $319×45＝$14,355

QS 10-5

The revised annual depreciation for both the second and third year is equal.

$(65,800－15,950－2,000)÷2＝$23,925

QS 10-6

2013: $830,000×25%＝$207,500

2014: $(830,000－207,500)×25%＝$155,625

2015: $(830,000－207,500－155,625)×25%＝$116,718,75

QS 10-7

When an asset is found impaired, which means the fair market value has been lower than its book value, an impairment expense should be charged and an impairment provision be accrued.

Dr: Impairment Expense-equipment 1,250

Cr: Impairment Provision-equipment 1,250

QS 10-8

a.capital expenditure

Dr：Refrigeration System 40,000

Cr: Cash 40,000

b.revenue expenditure

Dr: Repair Expense 200

Cr: Cash 200

c.revenue expenditure

Dr: Repair Expense 175

Cr: Cash 175

d.capital expenditure

Dr: Office Building 225,000

Cr: Cash 225,000

QS 10-9

(1) Dr: Cash 47,000

Accumulated Depreciation-equipment 40,800

Cr: Equipment 76,800 Gain on Disposal of Equipment 11,000

(2) Dr: Cash 36,000

Accumulated Depreciation-equipment 40,800

Cr: Equipment 76,800

(3) Dr: Cash 31,000

Loss on Disposal of Equipment 5,000

Accumulated Depreciation-equipment 40,800

Cr: Equipment 76,800

QS 10-12

Dr: Leasehold Improvement 105,000

Cr: Cash 105,000

Dr: Amortization Expense 13,125

Cr: Accumulated Amortization-leasehold improvement 13,125

Exercises

Exercise 10-1

Cost of Plant Asset: $12,500×(1－2%)＋360＋895＋475＋40＝$14,020

Exercise 10-2

Dr: Land 470,500 (280,000＋110,000＋33,500＋47,000) Building 1,452,200

Land Improvements 87,800

Cr: Cash 2,010,500

Note: Land purchased as a building site sometimes includes structures that must be removed. In such cases, the total purchase price is charged to the Land account as is the cost of removing the structures, less any amounts recovered through sale of salvaged materials. See the relative paragraph about Land in our textbook.

Exercise 10-3

Total cost paid in this lump-sum purchase: $395,380 (375,280＋20,100) .

The share allocated to Land: 157,040/(157,040＋58,890＋176,670)＝40%

The share allocated to Land Improvements: 58,890/392,600＝15%

The share allocated to Building: 176,670/392,600＝45%

Dr: Land 158,152 (395,380×40%)

Land Improvements 59,307 (395,380×15%)

Building 177,921 (395,380×45%)

Cr: Cash 395,380

Exercise 10-4

Second year’s depreciation under straight-line method:

$(43,500－5,000)÷10＝$3,850

Exercise 10-5

Second year’s depreciation under units-of-production method:

$(43,500－5,000)÷385,000×32,500＝$3,250

Exercise 10-6

Second year’s depreciation under DDB method:

Book value at the beginning of Year 2: $43,500－43,500×20%＝$34,800

Depreciation for Year 2: $34,800×20%＝$6,960

Exercise 10-7

(1)book value at the end of Year 2: $23,860－[(23,860－2,400)÷4×2]＝$13,130

(2)depreciation for each of the final three years:

$(13,130－2,000)÷3＝$3,710

Exercise 10-8

Depreciation for each year under straight-line method:

$(238,400－43,600)÷5＝$38,960