Budget problems
tyger06
BudgetTools2eModule19DepreciationSelfChecking2015-b.xlsxQuestion
| Type your name here, Last Name First |
| 19.2: Garbage Truck |
| A city government purchases a new garbage truck for $120,000 this year. It is estimated that the truck will have a residual value of $20,000 and a useful economic life of 20 years. What would be the depreciation expense each year if the straight-line method were used. |
| 19.4 City Hospital paid $500,000 for a piece of advanced diagnostic equipment. The total transportation and installation cost to make the equipment operational is $50,000. The staff-training cost to operate the new equipment is about $10,000. What should be the value of this capital asset? |
| x |
| Type your name here, Last Name First |
| Please enter your name on the first page |
Exercise 19.2
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| Please enter your name on the first page | Grade in Points (All Sheets) | 0.00 | |||||||
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A city government purchases a new garbage truck for $120,000 this year. It is estimated that the truck will have a residual value of $20,000 and a useful economic life of 20 years. What would be the depreciation expense each year if the straight-line method were used.
Exercise 19.4
| To show the cell checking, put a check here: | x | Percent Correct | 0% | ||||||
| Please enter your name on the first page | Grade in Points (All Sheets) | 0.00 | |||||||
| Please Select | |||||||||
| Capitalized | Expensed | ||||||||
| Cost | $ 500,000 | ||||||||
| Preparation | $ 50,000 | ||||||||
| Initial Operation | $ 10,000 | ||||||||
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| FALSE | |||||||||
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| 0 | 0 |
Answer 19.2
| Question and Solution for Question 2 | ||||||||||||||
| Question: | ||||||||||||||
| Answer: | ||||||||||||||
| Cost | $ 120,000 | |||||||||||||
| Residual | $ 20,000 | |||||||||||||
| Total Depreciation | $ 100,000 | |||||||||||||
| Years | 20 | |||||||||||||
| Annual Depreciation | $ 5,000 | |||||||||||||
| ADE = (C- R)/ N | -1 |
Answer 18.4
| 18.4: City hospital paid $500,000 for a piece of advanced diagnostic equipment. The transportation and installation costs to make the equipment functioning fully is $50,000. The staff training cost to operate the new equipment is about $10,000. How much of the costs should be capitalized for the asset? (assuming other costs involved negligible) | |||
| Capitalized | Expensed | ||
| Purchase price | $ 500,000 | x | |
| Transportation and Installation | $ 50,000 | x | |
| Initial Training | $ 10,000 | x | |
| Capitalized cost | $ 550,000 | ||
| Answer: Based on GASB Statement 34, the transportation and installation cost should be capitalized while the initial training cost should not. Consequently, the total capitalizable amount should be $550,000. | |||
Grade Worksheet
| 1 | Total Points Available | Item Grade Weight | x | A mark here makes the numbers in the grade calculation visible. | ||
| 0.25 | Base Points (for trying this exercise) | |||||
| 0 | Manual Points | |||||
| 0.75 | Points to be graded | |||||
| 0% | Percent all sheets | |||||
| 0.00 | Graded Points | |||||
| If these cells are blank, there are no cells requiring manual grading | ||||||
| 0.25 | Initial Grade | 0 | ||||
| 0.1 | Minimum Earned Points | |||||
| 0.35 | Threshold | |||||
| 0.00 | Grade | Grade Table | ||||
| A | 100% | |||||
| B | 90% | |||||
| C | 80% | |||||
| 0 | D | 70% | ||||
| 9 | F | 0% |
