ACC 201 Chapter 9: Chapter 9
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,000 of maintenance costs incurred at the end of the year. (that is, the costs are included in the asset account buildings rather than being expensed immediately as maintenance and repairs expense. ) As a result, the company will understate current-year expenses by approximately ,000 and will overstate current-year income by approximately ,000. Rst computes the asset"s depreciable cost at the time of the revision then allocates the revised depreciable cost to the remaining useful life. The of ce furniture originally cost ,000 and as of january 1, 2017, had accumulated depreciation of ,000. Depreciation for the rst 6 months of 2017 is. Loss on sale: assume that instead of selling the of ce furniture for ,000, wright sells it for. If national estimates the useful life of the patent to be 8 years, the annual amortization expense is ,500 (60,000/8) per year. National records ,750 (7,500*6/12) of amortization for the. 6-month period ended december 31 as follows: dec 31.
