1. Find the yearly straight-line depreciation of a home theatre system including the receiver, main audio speakers, surround sound speakers, audio and video cables, and blue-ray player that costs $3100 and has a salvage value of $900 after an expected life of 5 years in a hotel lobby.
2. Solve the problem. Round unit depreciation to nearest cent when making the schedule, and round final results to the nearest cent.
A barge is expected to be operational for 280,000 miles. If the boat costs $19,000.00 and has a projected salvage value of $1900.00, find the unit depreciation
3. Solve the problem. Round unit depreciation to nearest cent when making the schedule, and round final results to the nearest cent.
A construction company purchased a piece of equipment for $1520. The expected life is 9000 hours, after which it will have a salvage value of $380. Find the amount of depreciation for the first year if the piece of equipment was used for 1800 hours. Use the units-of-production method of depreciation.
Solve the problem using the information given in the table and the weighted-average inventory method. Round to the nearest cent.
4. Calculate the average unit cost.
| Date of Purchase | Units Purchased | Cost Per Unit |
| Beginning Inventory | 25 | $32.12 |
| March 1 | 70 | $25.24 |
| June 1 | 65 | $36.24 |
| August 1 | 40 | $20.81 |
5. Solve the problem using the information given in the table and the weighted-average inventory method. Round to the nearest cent.
Calculate the cost of ending inventory.
| Date of Purchase | Units Purchased | Cost Per Unit |
| Beginning Inventory | 25 | $33.18 |
| March 1 | 70 | $28.60 |
| June 1 | 65 | $38.75 |
| August 1 | 40 | $21.49 |
| Units Sold | 68 |
6. Solve the problem using the information given in the table and the weighted-average inventory method. Round to the nearest cent.
Calculate the cost of goods sold.
| Date of Purchase | Units Purchased | Cost Per Unit |
| Beginning Inventory | 25 | $34.13 |
| March 1 | 70 | $27.34 |
| June 1 | 65 | $35.61 |
| August 1 | 40 | $20.77 |
| Units Sold | 62 |
7. Solve the problem. Use a fraction for the rate and round dollar amounts to the nearest cent.
Jeremy James is depreciating solar panels purchased for $3600. The scrap value is estimated to be $900. He will use double-declining-balance and depreciate over 6 years. What is the first year’s depreciation?
8. Solve the problem. Use a fraction for the rate and round dollar amounts to the nearest cent.
Eric Johnson is depreciating a kitchen oven range purchased for $1720. The scrap value is estimated to be $172. He will use double-declining-balance and depreciate over 30 years. What is the first year’s depreciation?
9. Solve the problem. Use a fraction for the rate and round dollar amounts to the nearest cent.
Jane Frankis is depreciating a train engine purchased for $86,000. The scrap value is estimated to be $5000. She will use double-declining-balance and depreciate over 40 years. What is the first year’s depreciation?
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