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d. an abandonment of the asset.
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ACC 304 Week 4 Chapter 11 Homework
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ACC 304 Week 4 Chapter 11 Homework
1)
Lockard Company purchased machinery on January 1,
2014, for $102,960. The machinery is estimated to have a
salvage value of $10,296 after a useful life of 8 years.
2)
Compute 2014 depreciation expense using the doubledeclining-balance method.
3)
Compute 2014 depreciation expense using the doubledeclining-balance method, assuming the machinery was
purchased on October 1, 2014.

4)
Everly Corporation acquires a coal mine at a cost of
$452,000. Intangible development costs total $113,000. After
extraction has occurred, Everly must restore the property
(estimated fair value of the obligation is $90,400), after which
it can be sold for $180,800. Everly estimates that 4,520 tons
of coal can be extracted.