Depletion should be reported as an ________ on the income statement.
43) The three categories of writing off fixed and intangible assets are ________, ________, and ________.
44) Tender Years purchased a new van on January 1, 2009, for $40,000. The life of the van is 4 years or 100,000 kilometres, with an estimated residual value of $5,000. During the first year, the van was driven 20,000 kilometres. Compute the amortization for the first year applying each of the methods below.
a. ________ Straight-line
b. ________ Units-of-production
c. ________ Double-declining-balance
45) Yamara Company purchased a $60,000 machine at the beginning of the year. The machine is expected to have a useful life of 5 years or 20,000 operating hours and a residual value of $10,000. Compute the amount of amortization for the first and second years under each of the methods below.
Year 1Year 2Method
b. $________________$________________Units-of-production: production in
year 1, 5,000 hours; year 2, 6,000 hours
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