Panhandle Utilities bought 1, 000 poles on January 1, 2010, at a cost of $195, 000 and a residual value of $15, 000.In 2010, 10 of the poles were destroyed in a train accident.In 2011, 50 of the poles were sold at a price of $60 each.The replacement cost per pole at the end of 2010 was $195, but the replacement cost had risen to $204 by the end of 2011.
Required:
Calculate the depreciation expense for 2010 and 2011 using the inventory system.

Question

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The Answer of Panhandle Utilities bought 1, 000 poles on January 1, 2010, at a cost of $195, 000 and a residual value of $15, 000.In 2010, 10 of the poles were destroyed in a train accident.In 2011, 50 of the poles were sold at a price of $60 each.The replacement cost per pole at the end of 2010 was $195, but the replacement cost had risen to $204 by the end of 2011.
Required:
Calculate the depreciation expense for 2010 and 2011 using the inventory system.

Panhandle Utilities Bought 1, 000 Poles on January 1, 2010