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ACC 305 Week 5 Assignment Problems

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Question;Nov 13 The following changes have been made Pb 11-5 Cost Normalrepairs Installcharges Appraisedvalue ResidualLand A 92,000 Building A 800,000 Land A & Building A 850,000 Land B Building B Donated equip - Fair value 17,000 2,000Machine A 116,000 550 15,000 7000Machine B Pb 11-7 ChangedNumbers Cost of mine 1700000 Development cost 700000 Est total tons 450000 Revised est tons 525000 Problem 11-5(1) Allocation in proportion to appraised values at date of exchange:% ofAmount TotalLand \$92000 0.11Building 800,000 0.89\$892,000 100This percentage is multiplied times the cost.Land 850,000 \$ 93500Building (2) \$756,500(3) \$756,500-47500 =50years14000annual depreciation(4) \$ 14000(5) \$? shares x \$ per share = Plus demolition of old building (6) none 0(7) \$ Fair value.(8) \$(9) \$(10) \$ (11) \$(12) \$(13) \$ PVAD = \$(7.71008 *)* Present value of an annuity due of \$1: n = 11, i = 8% (from Table 6)(14) \$ \$yearsProblem 11-7See Illustration 11-6 for example to compute revised depreciation, page 577, see salvage value and how to compute. (You need to follow the correct steps to compute properly. i.e. review the example or you will get it wrong).Requirement 1Cost of mineral mine:Purchase price \$1700000Development costs \$7000002,400000Depletion:2,400000-100,000Depletion per ton = = \$ 3.1 per tontons4500002011 depletion = 50,000x3.1 =155,0002012 depletion:Revised depletion rate = (2400000 - 155,000) 100,000= \$ 4.5tons525000-5000002012 depletion = 4.51x 80000= 360,800Depreciation:Structures:\$150000Depreciation per ton = =.333 per tontons4500002011 depreciation =.333x50000=\$16,6502012 depreciation:Revised depreciation rate = 150,000-16,650= \$. 28tons 525000- 50,0002012 depreciation =.28x80,000=\$22,400Problem 11-7 (continued)Equipment:\$Depreciation per ton = = \$. per tontons2011 depreciation =2012 depreciation:Revised depreciation rate == \$.tons2012 depreciation =Requirement 2Mineral mine:Cost \$Less accumulated depletion:2011 depletion 2012 depletion Book value, 12/31/12 \$Structures:Cost \$Less accumulated depreciation:2011 depreciation \$2012 depreciation Book value, 12/31/12 \$Equipment:Cost Less accumulated depreciation:2011 depreciation \$2012 depreciation Book value, 12/31/12 \$="apple-interchange-newline">

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