Ron Swanson owns Swanson’s Woodcraft Connection, a store dedicated to woodworking tools, supplies, and design plans. On May 1, Year One, Swanson’s purchased a new warehouse to store additional inventory to help meet customer demand. Ron paid $50,000 for the warehouse and estimates that it will be used for twenty years. Salvage value is $5,000 and Swanson uses the straight-line method of depreciation. Swanson’s Woodcraft Connection has a December 31st year-end. What is the amount of depreciation to be taken in Year One? The amount of depreciation to be taken in Year One is: $ Question 2 The amount of depreciation to be taken in Year Two is:$ Question 3 Now, assume that Swanson’s Woodcraft Connection applies the half-year convention. The amount of depreciation expense to be taken in Year One is: $
Ron Swanson owns Swanson’s Woodcraft Connection, a store dedicated to woodworking tools, supplies, and design plans. On May 1, Year One, Swanson’s purchased a new warehouse to store additional inventory to help meet customer demand. Ron paid $50,000 for the warehouse and estimates that it will be used for twenty years. Salvage value is $5,000 and Swanson uses the straight-line method of depreciation. Swanson’s Woodcraft Connection has a December 31st year-end. What is the amount of depreciation to be taken in Year One? The amount of depreciation to be taken in Year One is: $ Question 2 The amount of depreciation to be taken in Year Two is:$ Question 3 Now, assume that Swanson’s Woodcraft Connection applies the half-year convention. The amount of depreciation expense to be taken in Year One is: $
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter10: Fixed Assets And Intangible Assets
Section: Chapter Questions
Problem 3CP: Tuttle Construction Co. specializes in building replicas of historic houses. Tim Newman, president...
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Ron Swanson owns Swanson’s Woodcraft Connection, a store dedicated to woodworking tools, supplies, and design plans. On May 1, Year One, Swanson’s purchased a new warehouse to store additional inventory to help meet customer demand. Ron paid $50,000 for the warehouse and estimates that it will be used for twenty years. Salvage value is $5,000 and Swanson uses the straight-line method of depreciation . Swanson’s Woodcraft Connection has a December 31st year-end. What is the amount of depreciation to be taken in Year One?
The amount of depreciation to be taken in Year One is: $
Question 2
The amount of depreciation to be taken in Year Two is:$
Question 3
Now, assume that Swanson’s Woodcraft Connection applies the half-year convention.
The amount of depreciation expense to be taken in Year One is: $
Question 4
Assuming that Swanson’s Woodcraft Connection applies the half-year convention.
The amount of depreciation expense to be taken in Year Two is: $
Question 5
The
Debit Response area Response area
Credit Response area Response area
Accum. Dec.
1,125
Deprec. Expense
2,250
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Question 6
The entry to dispose of the warehouse in Year Three is:
Debit Response area Response area
Debit Response area Response area
Debit Response area Response area
Credit Response area Response area
Cash
7,500
4,500
50,000
Loss
Accum. Deprec.
Warehouse
38,000
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