ACC 304 All Assignments ACC 304 All Assignments | Page 182

6) Slotkin Products purchased a machine for $39,000 on July 1, 2014.
The company intends to depreciate it over 8 years using the double-
declining balance method. Salvage value is $3,000. Depreciation for
2014 is
7) Tongas Company applies revaluation accounting to plant assets
with a carrying value of $1,600,000, a useful life of 4 years, and no
salvage value. Depreciation is calculated on the straight-line basis. At
the end of year 1, independent appraisers determine that the asset has
a fair value of $1,500,000.
The financial statements for year one will include the following
information
8) Tongas Company applies revaluation accounting to plant assets
with a carrying value of $1,600,000, a useful life of 4 years, and no
salvage value. Depreciation is calculated on the straight-line basis. At
the end of year 1, independent appraisers determine that the asset has
a fair value of $1,500,000.
9) Which of the following is not an acceptable approach in applying
the lower-of-cost-or-market method to inventory?