Act102

EXERCISES
Ex. 91
a. New printing press: 1, 2, 3, 4, 5
b. Used printing press: 7, 8, 9, 10

Ex. 92
a. Yes. All expenditures incurred for the purpose of making the discharge suitable for
its intended use should be debited to the stain account.
b. zero(prenominal) Land is not depreciated.

Ex. 93
Initial cost of land ($25,000 + $300,000) ....................
Plus: Legal fees ..........................................................
Delinquent taxes ...............................................
Demolition of building ......................................
little salvage of materials ...........................................
Cost of land .................................................................

$325,000
$ 2,100
14,000
9,000

25,100
$350,100
3,500
$346,600

Ex. 94
Capital expenditures: 1, 2, 3, 4, 5, 8, 10
revenue expenditures: 6, 7, 9

Ex. 95
Capital expenditures: 1, 2, 3, 4, 6, 10
Revenue expenditures: 5, 7, 8, 9

513
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hearty website, in whole or in part.

Ex. 96
Feb.

4 Accumulated Depreciationâ€"Delivery truck.....
Cash................................................................

4,300

6 Delivery Truck ................................................



.....
Cash................................................................

1,900

Sept. 10 Repairs and Maintenance Expense ...................
Cash................................................................

60

May

4,300
1,900
60

Ex. 97
a. No. The $7,500,000 represents the cowcatcher cost of the equipment. Its replacement cost, which may be more or less than $7,500,000, is not reported in
the financial statements.
b. No. The $6,175,000 is the solicitation of the past depreciation charges on
the equipment. The recognition of depreciation expense has no relationship
to the cash account or accumulation of cash funds.

Ex. 98
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