Download Honors: Principles of Financial Accounting - Assignment 8 | ACG 203 and more Assignments Financial Accounting in PDF only on Docsity!
Student Name: Class: Problem 08-01A TENNESS CONSTRUCTION Schedule Estimated Market Percentage Apportioned Value of Total Cost Building $514,250 55% $495,000 «- Correct! Land 271,150 29% 261,000 «- Correct! Land Improvements 65,450 7% 63,000 «- Correct! Vehicles 84,150 9% 81,000 «- Correct! Totals $935,000 100% $900,000 «- Correct! TENNESS CONSTRUCTION General Journal Trans. Date Account Titles no. Debit Credit Jan. 1 Building 495, Land 261, Land Improvements 63, Vehicles 81, Cash 900,000 «- Correct! Part 2: Straight-line depreciation on building = $31,000 «- Correct! Part 3: Double-declining-balance depreciation on land improvements = $25,200 «- Correct! Part 4: Defend or refute this statement: Accelerated depreciation results in payment of less taxes of the asset's life. Accelerated Depreciation results in less taxes because you are paying for an asse
Given Data P08-01A: TENNESS CONSTRUCTION Cash price for all assets purchased $900, Estimated market values: Building 514, Land 271, Land improvements 65, Vehicles (4) 84, Building: Useful life in years 15 Salvage value 30, Land improvements useful life in years 5 Check figures: (2) $ 31, (3) 25,
Given Data P08-02A: SOLARIS CO. Purchase price for land and 2 buildings $ 2,650, Building Two: Appraised value 692, Useful life in years 20 Salvage value 85, Land Improvements One: Appraised value 451, Useful life in years 12 Salvage value 0 Use Appraised value of land only 1,866,820 Text Cost to demolish Building One 342,000 342, Cost of additional land grading 193, Cost to construct Building Three 2,282, Building Three: Useful life in years 25 Salvage value 400, Cost of Land Improvements Two 168, Land Improvements Two: Useful life in years 20 Salvage value 0 Check figures: (1) Land costs $ 2,178, Building 2 costs 609, (3) Depr. - Land improvement 1 33, Depr. - Land improvement 2 8,
