PROBLEM 29-11
Double declining rate = 200% 40.00%
5.00
I. Asset A
Cost of asset A 4,000,000.00
Less: accumulated depreciati -2,560,000.00
Carrying amount 1,440,000.00
x declining rate 0.40
Depreciation 2024 576,000.00 1.00
II. Asset B
Straight line method = 1,440,000.00 -200,000.00 248,000.00
5.00
Annual depreciation 248,000.00
x years passed 3.00
Accumulated depreciation 744,000.00
SYD = 6.00 15.00
5.00
2.00
2021 1,800,000.00 x 5/15 = 600,000.00
2022 1,800,000.00 x 4/15 = 480,000.00
2023 1,800,000.00 x 3/15 = 360,000.00
Accumulated depreciation 1,440,000.00 *asset B is using SYD
2024 1,800,000.00 x 2/15 = 240,000.00 1.00
III. Asset C
Cost of asset C 2,800,000.00
Less: Accumulated depreciat -1,344,000.00
Carrying amount 1,456,000.00
Cash proceeds 1,700,000.00
Less: Carrying amount -1,456,000.00
Gain on sale 244,000.00 1.00
PROBLEM 29-12
March 31 Tools 40,000.00
Cash 40,000.00
July 31 Tools 20,000.00
Cash 20,000.00
Dec. 31 Cash 4,000.00
Tools 4,000.00
Dec. 31 Depreciation expense 46,000.00
Tools 46,000.00
Beginning balance 140,000.00
Add: Acquisition 40,000.00
Add: Acquisition 20,000.00
Less: Sales -4,000.00
Total tools 196,000.00
Less: ending inventory -150,000.00
Depreciation 46,000.00
PROBLEM 29-13
Retirement method
2024 Tools 120,000.00
Cash 120,000.00
Original cost 60,000.00
Cash proceeds 15,000.00
Depreciation 45,000.00
Cash 15,000.00
Depreciation expense 45,000.00
Tools 60,000.00
2025 Tools 360,000.00
Cash 360,000.00
Original cost
Beg. 100,000.00
2024 60,000.00
Cash proceeds -49,000.00
Depreciation 111,000.00
Cash 49,000.00
Depreciation expense 111,000.00
Tools 160,000.00
Replacement method
2024 Tools 120,000.00
Cash 120,000.00
Original cost 90,000.00
Cash proceeds -15,000.00
Depreciation 75,000.00
Cash 15,000.00
Depreciation expense 75,000.00
Tools 90,000.00
2025 Tools 360,000.00
Cash 360,000.00
Original cost 280,000.00
Cash proceeds -49,000.00
Depreciation 231,000.00
Cash 49,000.00
Depreciation expense 231,000.00
Tools 280,000.00
Inventory method
2024 Tools 120,000.00
Cash 120,000.00
Beginning 160,000.00
2024 acquisition 120,000.00
retirement -15,000.00
Total balance 265,000.00
Less: ending inventory -200,000.00
Depreciation 65,000.00
Cash 15,000.00
Tools 15,000.00
Depreciation expense 65,000.00
Tools 65,000.00
2025 Tools 360,000.00
Cash 360,000.00
Cash 49,000.00
Tools 49,000.00
Beginning 200,000.00
2025 acquisition 360,000.00
retirement -49,000.00
Total balance 511,000.00
Less: ending inventory -350,000.00
Depreciation 161,000.00
Depreciation expense 161,000.00
Tools 161,000.00
PROBLEM 29-14
Jan. 1, 2024 Number of shares 25,000.00
x quoted price 50.00
Share capital 1,250,000.00
Land 150,000.00 250,000.00
Building 600,000.00 1,000,000.00
750,000.00 1,250,000.00
### Land Improvements 192,000.00
Divided by: useful life 12.00
Annual depreciation 16,000.00
x months 9/12
Depreciation for 2024 12,000.00
July 1, 2024 Machinery and equipment 340,000.00
Add: Delivery cost 10,000.00
Add: Installation cost 50,000.00
Total cost 400,000.00
Divided by: useful life 10.00
Annual depreciation 40,000.00
x months 6/12
Depreciation 2024 20,000.00
Requirement #1:
Building
Cost of building 7,500,000.00
Add: Acquired building 1,000,000.00
Total cost of building 8,500,000.00
Less: Accumulated deprecia-1,644,500.00
Carrying amount 6,855,500.00
x double declining rate 8%
Accumulated depreciation 548,440.00
Machinery and equipment #1:
Cost of machinery 2,250,000.00
Divided by: useful life 10.00
Annual depreciation 225,000.00
Machinery and equipment #2:
Machinery and equipment 340,000.00
Add: Delivery cost 10,000.00
Add: Installation cost 50,000.00
Total cost 400,000.00
Divided by: useful life 10.00
Annual depreciation 40,000.00
x months 6/12
Depreciation 2024 20,000.00
Total depreciation 2024 245,000.00
Land Improvements
Land Improvements 192,000.00
Divided by: useful life 12.00
Annual depreciation 16,000.00
x months 9/12
Depreciation for 2024 12,000.00
Requirement #2:
Land
Cost of land 875,000.00
Add: acquired land 250,000.00
Carrying amount 1,125,000.00
Building
Cost of building 7,500,000.00
Add: Acquired building 1,000,000.00
Total cost of building 8,500,000.00
Less: Accumulated deprecia-2,193,000.00
Carrying amount 6,307,000.00
Machinery and equipment
Cost of Machinery and equ 2,250,000.00
Add: Machinery acquired 400,000.00
Less: retirement of machine -150,000.00
Total cost 2,500,000.00
Less: Accumulated deprecia -635,000.00
Less: depreciation 2024 -245,000.00
Add: Retirement 130,000.00
Carrying amount 1,750,000.00
Land Improvements
Cost of land 192,000.00
Less: depreciation -12,000.00
Carrying amount 180,000.00
