Morgana Film Productions Inc. purchased a copier on Jan 1, 2011 for $12,700 with a residual value of $1500. Useful life is 5 years or 100,000 copies Copies produced in 2011: 13000 copies; in 2012: 15,000 copies Using the Activity/Units of Production Method, calculate: a) The Depreciation Expense in 2011 & 2012 $ in 2011 in 2012 b) Accumulated depreciation at the end of 2012 EA $ c) Book value at the end of 2012
Morgana Film Productions Inc. purchased a copier on Jan 1, 2011 for $12,700 with a residual value of $1500. Useful life is 5 years or 100,000 copies Copies produced in 2011: 13000 copies; in 2012: 15,000 copies Using the Activity/Units of Production Method, calculate: a) The Depreciation Expense in 2011 & 2012 $ in 2011 in 2012 b) Accumulated depreciation at the end of 2012 EA $ c) Book value at the end of 2012
Chapter11: Long-term Assets
Section: Chapter Questions
Problem 3EB: Montello Inc. purchases a delivery truck for $25,000. The truck has a salvage value of $6,000 and is...
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Depreciation Methods
The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.
Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
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![Morgana Film Productions Inc. purchased a copier on Jan 1, 2011 for $12,700 with a residual
value of $1500.
Useful life is 5 years or 100,000 copies
Copies produced in 2011: 13000 copies; in 2012: 15,000 copies
Using the Activity/Units of Production Method, calculate:
a) The Depreciation Expense in 2011 & 2012
$
in 2011
in 2012
b) Accumulated depreciation at the end of 2012
c) Book value at the end of 2012](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2a3de9fb-7e31-4825-a337-c2eb63bed935%2F95219500-462e-489d-9d65-90c4abf5b563%2Fq7hi36q_processed.png&w=3840&q=75)
Transcribed Image Text:Morgana Film Productions Inc. purchased a copier on Jan 1, 2011 for $12,700 with a residual
value of $1500.
Useful life is 5 years or 100,000 copies
Copies produced in 2011: 13000 copies; in 2012: 15,000 copies
Using the Activity/Units of Production Method, calculate:
a) The Depreciation Expense in 2011 & 2012
$
in 2011
in 2012
b) Accumulated depreciation at the end of 2012
c) Book value at the end of 2012
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