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livette ltd is developing a detalied plan for next year and expects to have the

ID: 2669157 • Letter: L

Question

livette ltd is developing a detalied plan for next year and expects to have the following fixed asset accounts by the end of this year (000).

gross 45,789
accumulated dep. (26,328
net fixed assets 19,461
the capatial plan already completed calls for expenditures of 7,042,000 on new equipment next year,which will be depricated straight line over a 10 year peroid without a half year convention. assets currently on the books will depricate by 4,258,000 next year develop livetree's ending fixed asset balances for the planned year.

Explanation / Answer

livette ltd is developing a detalied plan for next year and expects to have the following fixed asset accounts by the end of this year (000).

gross 45,789
accumulated dep. (26,328
net fixed assets 19,461
the capatial plan already completed calls for expenditures of 7,042,000 on new equipment next year,which will be depricated straight line over a 10 year peroid without a half year convention. assets currently on the books will depricate by 4,258,000 next year develop livetree's ending fixed asset balances for the planned year.

Depreciation on new asstes= 7 042 000/10 =7 042 000

Depreciation on oldasstes=---------------------4,258,000

Total--------------------------------------------------4,962,000

assets

begin

add

end

gross

45,789,000

7,042,000

52,831,000

depreciation

26,328 000

4,962,200

31,290,200

net

19,461,000

2,079,800

21,540,800

assets

begin

add

end

gross

45,789,000

7,042,000

52,831,000

depreciation

26,328 000

4,962,200

31,290,200

net

19,461,000

2,079,800

21,540,800