【正文】 boat. The boat has an estimated residual value of $3,000 and an estimated useful life of 5 years. Compute depreciation for 1998 using the doubledeclining balance method. ?The McGrawHill Companies, Inc., 1999 Slide 927 Irwin/McGrawHill DoubleDeclining Balance Example On January 1, 1998, Bass Co. buys a new boat. Bass Co. pays $24,000 for the boat. The boat has an estimated residual value of $3,000 and an estimated useful life of 5 years. Compute depreciation for 1998 using the doubledeclining balance method. 1 9 9 8 D e p r . E x p e n s e =R e m a i n i n g B o o k V a l u eA c c e l e r a t e d D e p r e c i a t i o n R a t e = 2 4 , 0 0 0$ 2 ? 1/ 5 = 2 4 , 0 0 0$ 40% = 9 , 6 0 0$ ?The McGrawHill Companies, Inc., 1999 Slide 928 Irwin/McGrawHill DoubleDeclining Balance Example Compute depreciation for the rest of the boat抯 estimated useful life. Y e a r C o m p u t a t i o nD e p r . E x p e n s eA c c u m u l a t e d D e p r e c i a t i o nB o o k V a l u e1998 2 4 , 0 0 0$ 40% 9 , 6 0 0$ 9 , 6 0 0$ 1 4 , 4 0 0$ 1999 1 4 , 4 0 0$ 40% 5 , 7 6 0$ 1 5 , 3 6 0$ 8 , 6 4 0$ 2020 8 , 6 4 0$ 40% 3 , 4 5 6$ 1 8 , 8 1 6$ 5 , 1 8 4$ 2020 5 , 1 8 4$ 40% 2 , 0 7 4$ 2 0 , 8 9 0$ 3 , 1 1 0$ 2020 110$ 2 1 , 0 0 0$ 3 , 0 0 0$ T o t a l D e p r e c i a t i o n 2 1 , 0 0 0$ P l u g y e a r 5?The McGrawHill Companies, Inc., 1999 Slide 929 Irwin/McGrawHill DoubleDeclining Balance Example Y e a r C o m p u t a t i o nD e p r . E x p e n s eA c c u m u l a t e d D e p r e c i a t i o nB o o k V a l u e1998 2 4 , 0 0 0$ 40% 9 , 6 0 0$ 9 , 6 0 0$ 1 4 , 4 0 0$ 1999 1 4 , 4 0 0$ 40% 5 , 7 6 0$ 1 5 , 3 6 0$ 8 , 6 4 0$ 2020 8 , 6 4 0$ 40% 3 , 4 5 6$ 1 8 , 8 1 6$ 5 , 1 8 4$ 2020 5 , 1 8 4$ 40% 2 , 0 7 4$ 2 0 , 8 9 0$ 3 , 1 1 0$ 2020 110$ 2 1 , 0 0 0$ 3 , 0 0 0$ T o t a l D e p r e c i a t i o n 2 1 , 0 0 0$ P l u g y e a r 5Total depreciation over the estimated useful life of an asset is the same using either the straightline method or the decliningbalance method. ?The McGrawHill Companies, Inc., 1999 Slide 930 Irwin/McGrawHill DoubleDeclining Balance Graph of Depreciation Expense 9600576034562074110$0$1 ,00 0$2 ,00 0$3 ,00 0$4 ,00 0$5 ,00 0$6 ,00 0$7 ,00 0$8 ,00 0$9 ,00 0$1 0,0 001997 1998 1999 2020 2020 2020For the y ea r en ded De ce mbe r 31Depreciation?The McGrawHill Companies, Inc., 1999 Slide 931 Irwin/McGrawHill Depreciation Methods in Use for Financial Reporting A surv e y of 6 0 0 P ubli c ly O w ne d Corpora t ions563441170539S t ra ight li neDe c li ning ba la nc eS um of t he y e a rs 39。 40,000 Tons = $25 Per Ton Depletion of Natural Resources Example ?The McGrawHill Companies, Inc., 1999 Slide 974 Irwin/McGrawHill For the year ABC mined and sold 13,000 tons. What is the total depletion cost for the year? a. $300,000. b. $325,000. c. $225,000. d. $275,000. Depletion of Natural Resources Example ?The McGrawHill Companies, Inc., 1999 Slide 975 Irwin/McGrawHill For the year ABC mined and sold 13,000 tons. What is the total depletion cost for the year? a. $300,000. b. $325,000. c. $225,000. d. $275,000. Depletion cost = 13,000 x $25 = $325,000 Depletion of Natural Resources Example ?The McGrawHill Companies, Inc., 1999 Slide 976 Irwin/McGrawHill Specialized plant assets may be required to extract the natural resource. These assets are recorded in a separate account and depreciated. Depletion of Natural Resources ?The McGrawHill Companies, Inc., 1999 Slide 977 Irwin/McGrawHill End of Chapter 9 ?The McGrawHill Companies, Inc., 1999 Slide 978 Irwin/McGrawHill Chapter 8 Inventories and the Cost of Goods Sold ?The McGrawHill Companies, Inc., 1999 Slide 979 Irwin/McGrawHill Inventory Defined Goods owned and held for sale to customers Current asset Inventory ?The McGrawHill Companies, Inc., 1999 Slide 980 Irwin/McGrawHill The Flow of Inventory Costs B A L A N C E S H E E T C u r r e n t a s s e t s : I n v e n t o r yI N C O M E S TA TE M E N T R e v e nu e C os t of go od s s ol d G r os s pr of i t E x pe ns e s N e t i nc om ePurchase cost (or manufacturing costs) as incurred as goods are sold ?The McGrawHill Companies, Inc., 1999 Slide 981 Irwin/McGrawHill The Flow of Inventory Costs G E N E R A L J O U R N A LD a t e A c c oun t Ti t l e s a nd E x pl a na t i on D e bi t C r e di tE nt r y on P ur c ha s e D a t eI nv e nt or y $$$$A c c oun t s P a y a bl e $$$$E nt r y on S a l e D a t eC os t of G ood s S ol d $$$$I nv e nt or y $$$$In a perpetual inventory system, inventory entries parallel the flow of costs. ?The McGrawHill Companies, Inc., 1999 Slide 982 Irwin/McGrawHill Which Unit Did We Sell? Does It Really Matter? G E N E R A L J O U R N A LD a t e A c c oun t Ti t l e s a nd E x pl a na t i on D e bi t C r e di tE nt r y on S a l e D a t eC os t of G ood s S ol d $$$$I nv e nt or y $$$$When identical units of inventory have different unit costs, a question naturally arises as to which of these costs should be used in recording a sale of inventory. ?The McGrawHill Companies, Inc., 1999 Slide 983 Irwin/McGrawHill Inventory Subsidiary Ledger A separate subsidiary account is main。 10