HARRIS COMPANY Capitalization Costs Problem 18.01A week 5 assignment

HARRIS COMPANY Capitalization Costs Problem 18.01A week 5 assignment

Question HARRIS COMPANY
Capitalization Costs
1. Manufacturing Plant:
Harris company
Cost of manufacturing plant
2. Land

Cost of land
3. Land Improvements
Cost of land improvements

$-

Given Data P18.01A
HARRIS COMPANY
Cost of site for new Manufacturing plant on January 6, 2013
Cost to raze existing facility
Fair market value of facility razed
Amount received from salvage of facility razed
Additional costs:
Attorney fees
Inspection fees
Permit to raze facility
Fill dirt for site
Leveling of site
Paving of sidewalks and curbs
Building cost of new facility
Cost of paving parking area

$2,400,000
$16,000
$200,000
$10,000
$6,400
$1,850
$1,150
$50,400
$32,000
$125,000
$4,200,000
$125,700

Student Name:
Class:
Problem 18.02A
ILLINOIS COMPANY
Depreciation Calculations
Straight-Line Method
Year
1
2
3

Acquisition
Cost

Salvage
Value

Useful Life
in Years

Annual
Accumulated
Depreciation Depreciation

Sum-of-the-Years'-Digits Method

Year
1
2
3

Cost Less
Salvage

Fraction

Annual
Accumulated
Depreciation Depreciation

Double-Declining-Balance Method

Year
1
2
3

Beginning
Book Value

Rate

Annual
Accumulated
Depreciation Depreciation

Analyze: The book value at the end of the second year is:

Given Data P18.02A
ILLINOIS COMPANY
Cost of new equipment
Date Purchased
Useful life in years
Salvage value

$550,000
January 4, 2013
4
$50,000

Student Name:
Class:
Problem 18.03A
HALL COMPANY
Depreciation Calculations
Straight-Line Method
Year
2013
2014
2015

Acquisition
Cost

Salvage
Value

Useful Life
in Years

Annual
Accumulated
Depreciation Depreciation

Sum-of-the-Years'-Digits Method

Year
2013
2014
2015

Acquisition
Cost

Salvage
Value

Total Expected
Actual
Units of
Units of
Production
Production

Cost
per Unit

Annual
Accumulated
Depreciation Depreciation

Given Data P18.03A
HALL COMPANY
Cost of new equipment
Date Purchased
Useful life in years
Useful life in units of production
Salvage value
Actual production data:
2013 units produced
2014 units produced
2015 units produced

$260,000
January 5, 2013
5
200,000
$20,000
40,000
56,000
46,000
,
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