36、Assume U.S. GAAP (generally accepted accounting principles) applies unless otherwise noted.

On January 2, 2005, Lyon Limited bought a piece of manufacturing equipment for $250,000. At that time they estimated its useful life to be 10 years and its salvage value to be $10,000. During 2007, it became apparent that the equipment was wearing out more quickly than they had originally estimated. It now appeared that its useful life would only be 6 years in total. If Lyon Limited uses the straight-line method for depreciation and has a policy of only taking one-half year's depreciation in the year of acquisition, the depreciation expense on this piece of equipment for 2007 will be closest to:

A. $48,000.

B. $51,000.

C. $53,125.

D. $60,000.

答案和详解如下：

36、Correct answer is B

"Understanding the Income Statement," Thomas R. Robinson, Hennie van Greuning, Elaine Henry, and Michael A. Broihahn

2008 Modular Level I, Vol. 3, pp. 162-164

"Analysis of Long-Lived Assets: Part II - Analysis of Depreciation and Impairment," Gerald I. White, Ashwinpaul C. Sondhi, and Dov Fried

2008 Modular Level I, Vol. 3, pp. 383-384, 396

Study Sessions 8-32-e, 9-37-b

demonstrate the depreciation of long-term assets using each approved method, accounting for inventory using each approved method, and amortization of intangibles;

demonstrate how modifying the depreciation method, the estimated useful life, and/or the salvage value used in accounting for long-lived assets affect financial statements and ratios

Original depreciation (250,000 - 10,000) / 10 = 24,000 per year. They have taken 1½ years worth (½ year for 2005 and full year for 2006) = 36,000. The new estimate is for 6 years in total and 2 years have passed, so there are 4 years remaining. Revised depreciation (250,000 - 36,000 - 10,000) / 4 = $51,000

Good