Sdccd.instructure.com USer: XXXXXXXXXX Pw:Tommyyh98! under acct 116A chater 8 homework in assignments tab Chapter 8 Video Help problem E8-48, E8-49 HOMEWORK PROBLEMS Class, The video below will help...

Answer to question 1
1. Cost of the company's land, land improvements, and building
    Particulars
     Amount $
     Cost of land
     
     Cash paid (Down payment)
     95,000
     Note payable issued
     1,70,000
     Delinquent property tax paid
     1,500
     Title Insurance
     4,500
     Cost of land
     2,71,000
     
     
     Total cost land improvement
     
     Leveling of land and removing an unwanted building
     6,500
     Fence around the property
     55,000
     Total cost land improvement
     61,500
     
     
     Cost of the construction of Building
     
     Construction cost of an office building
     6,50,000
     Cost of company sign board near entrance
     10,000
     Cost of the Building
     6,60,000
1. The assets will ​Industries, Inc.,​ depreciate are Land improvements and Building.
Note:- Cost of special lighting on the grounds is categorized under asset head 'Electrical Fittings'
Answer to question 2
1. Schedule of depreciation expense per year for the equipment under the three depreciation methods
    Year
    Straight Line Method
    Units of Production Method
    Double Declining Balance
    1
    5250
    2100
    12000
    2
    5250
    6300
    6000
    3
    5250
    8400
    1500
    4
    5250
    4200
    1500
Workings:-
Straight Line Method:-
Cost of Equipment $24,000
Residual value $3,000
No. of years = 4 years
Depreciation = (Cost of Equipment - Residual value) / No. of years
= (24000 - 3000) / 4
= $5,250
Units of Production Method
    Cost of Equipment
    24000
    Residual Value
    3000
    Useful Life
    840
    Year
    Beginning Value
    Depreciation per operation (a)
    Basis of depreciation (b)
    Depreciation (a*b)
    Ending Value
    1
    24000
    25
    84
    2100
    21900
    2
    21900
    25
    252
    6300
    15600
    3
    15600
    25
    336
    8400
    7200
    4
    7200
    25
    168
    4200
    3000
Double Declining Balance:-
    Cost of Equipment
    24000
    Residual Value
    3000
    Useful Life
    4 years
    Depreciable Value
    (24,000 – 3,000) = 21,000
    Annual Depreciation
     21,000 / 4
    DDB Depreciation
    50%
    Year
    Beginning Value
    Rate of Depreciation
    Depreciation
    Accumulated Depreciation
    Ending Value
    1
    24000
    50%
    12000
    12000
    12000
    2
    12000
    50%
    6000
    18000
    6000
    3
    6000
    50%
    1500
    19500
    4500
    4
    4500
    50%
    1500
    21000
    3000
2. Which method most closely tracks the wear and tear on the equipment?
The Unit of production method tracks the wear and tear on the equipment most closely.
3. Which method would prefer to use for income tax purposes in the first years of the ​equipment’s life? Explain in detail why a taxpayer would prefer this method.
As the double declining method of depreciation gives the maximum amount of depreciation in the first year, the company should follow the same for income tax purposes.
Answer to question 3
    Depreciation for year 15
    Date
    Particulars
    Debit ($)
    Credit ($)
     
     Depreciation expense-Building
     35,000
     
     
     To Accumulated...