HARRIS COMPANY Capitalization Costs Problem 18.01A week 5 assignment
Question # 00009082
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Updated on: 02/24/2014 09:33 PM Due on: 03/21/2014
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
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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Rating:
/5
Solution: HARRIS COMPANY Capitalization Costs Problem 18.01A week 5 assignment