ACC 422 Week 4 WileyPLUS Assignment
ACC 422 Week 4 WileyPLUS Assignment
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ACC 422 Week 4 WileyPLUS Assignment
Exercise 11-4
Wenner Furnace Corp. purchased machinery for $650,070 on May 1, 2012. It is estimated that it will have a useful life of 10 years, salvage value of $34,950, production of 559,200 units, and working hours of 25,000. During 2013, Wenner Corp. uses the machinery for 2,650 hours, and the machinery produces 59,415 units.
From the information given, compute the depreciation charge for 2013 under each of the following methods. (Round answers to 0 decimal places, e.g. $45,892.) Problem 11-6
Conan O’Brien Logging and Lumber Company owns 3,200 acres of timberland on the north side of Mount Leno, which was purchased in 2000 at a cost of $640 per acre. In 2012, O’Brien began selectively logging this timber tract. In May of 2012, Mount Leno erupted, burying the timberland of O’Brien under a foot of ash. All of the timber on the O’Brien tract was downed. In addition, the logging roads, built at a cost of $159,000, were destroyed, as well as the logging equipment, with a net book value of $323,200.
At the time of the eruption, O’Brien had logged 20% of the estimated 550,000 board feet of timber. Prior to the eruption, O’Brien estimated the land to have a value of $260 per acre after the timber was harvested. O’Brien includes the logging roads in the depletion base.
O’Brien estimates it will take 3 years to salvage the downed timber at a cost of $707,400. The timber can be sold for pulp wood at an estimated price of $3 per board foot. The value of the land is unknown, but must be considered nominal due to future uncertainties.
(a) Determine the depletion cost per board foot for the timber harvested prior to the eruption of Mount Leno. (Round per unit answer to 2 decimal places, e.g. 0.45.)
(b) Prepare the journal entry to record the
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ACC 422 Week 4 WileyPLUS Assignment
Exercise 11-4
Wenner Furnace Corp. purchased machinery for $650,070 on May 1, 2012. It is estimated that it will have a useful life of 10 years, salvage value of $34,950, production of 559,200 units, and working hours of 25,000. During 2013, Wenner Corp. uses the machinery for 2,650 hours, and the machinery produces 59,415 units.
From the information given, compute the depreciation charge for 2013 under each of the following methods. (Round answers to 0 decimal places, e.g. $45,892.) Problem 11-6
Conan O’Brien Logging and Lumber Company owns 3,200 acres of timberland on the north side of Mount Leno, which was purchased in 2000 at a cost of $640 per acre. In 2012, O’Brien began selectively logging this timber tract. In May of 2012, Mount Leno erupted, burying the timberland of O’Brien under a foot of ash. All of the timber on the O’Brien tract was downed. In addition, the logging roads, built at a cost of $159,000, were destroyed, as well as the logging equipment, with a net book value of $323,200.
At the time of the eruption, O’Brien had logged 20% of the estimated 550,000 board feet of timber. Prior to the eruption, O’Brien estimated the land to have a value of $260 per acre after the timber was harvested. O’Brien includes the logging roads in the depletion base.
O’Brien estimates it will take 3 years to salvage the downed timber at a cost of $707,400. The timber can be sold for pulp wood at an estimated price of $3 per board foot. The value of the land is unknown, but must be considered nominal due to future uncertainties.
(a) Determine the depletion cost per board foot for the timber harvested prior to the eruption of Mount Leno. (Round per unit answer to 2 decimal places, e.g. 0.45.)
(b) Prepare the journal entry to record the