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3 welcome! LinkedIn In Search l LinkedIn x t (15) Tumblr x R My Account I Wix.corm x Wix Website Editor x Chegg.com a Amazon.com: Entrepreneu x C b www.chegg.com/homework 2014-dext k-help/dep p-buy 26-chap 9781285972572 home study business accounting soutions manual/ financial accounting 9th edition chapter 4 problem 8e TEXTBOOK SOLUTIONS FOR Financial accounting 9th Edition v show all steps Chapter: CH4 v Problem: 8E Question: 8BE Depreciation CH4 On July 1, 2014, Dexter Corp. buys a computer system for $260,000 in cash. Assume that the computer is expected to have a four-year life and an estimated salvage value of $20,000 at the end of that time. Required rd the p put July 2014 2. Compute the depreciable cost of the computer. 3. Using the straight-line method, compute the monthly depreciation. 4. Prep headusting rd dep et the end July 2014 5. Compute the computers carrying value that will be shown on Dexter's balance sheet prepared on December 31, 2014. We don't have the solution to this problem yet. Get help from a Chegg subject expert. Ask an expert CH4 8P Indispensable 7:35 PM 2/13/2016

Explanation / Answer

1) Journal entry :

Tangible asset (Computer) A/c 260000

To CAsh A/c 260000

2) Depreciable cost of the asset will be 260,000-20,000 = 240,000

3) Straight line method the depreciation can be calculated by appying the useful life considering the SALVAGE VALUE

2,40,000/48months = 5000 monthly depreciation

ournal entry to record depreciation :

considering the accumulated depreciation is consioder

therefore the entry would be :

depreciation A/c 5000

To Accumulated depreciation A/c 5000

5) the value of the computer will be at the end of december will be

2,60,000 - 6 month depreciation which is 5000* 6 = 30,000 therefore the value of the asset would be

2,60,000- 30,000 = 2,30,000

Thank you

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