1.value:1.00 pointsPurity Ice Cream Company bought a new ice cream maker at the beginning of the year at a cost of $10,000. The estimated useful life was four years, and the residual value was $1,000. Assume that the estimated productive life of the machine was 9,000 hours. Actual annual usage was 3,600 hours in year 1; 2,700 hours in year 2; 1,800 hours in year 3; and 900 hours in year 4.Required:1.Complete a separate depreciation schedule for each of the alternative methods.(Round your answers to the nearest dollar amount. Omit the “$” sign in your response.)a.Straight-line.YearDepreciationExpenseAccumulatedDepreciationNetBook ValueAt acquisition$ 1$ $ 2 3 4 b.Units-of-production (use four decimal places for the per unit output factor).YearDepreciationExpenseAccumulatedDepreciationNetBook ValueAt acquisition$ 1$ $ 2 3 4 c.Double-declining-balance.YearDepreciationExpenseAccumulatedDepreciationNetBook ValueAt acquisition$ 1$ $ 2 3 4 eBook Link.mhecloud.mcgraw-hill.com/”>references2.value:1.00 pointsTrotman Company had three intangible assets at the end of 2012 (end of the accounting year):a.Computer software and Web development technology purchased on January 1, 2011, for $70,000. The technology is expected to have a four-year useful life to the company.b.A patent purchased from Ian Zimmer on January 1, 2011, for a cash cost of $6,000. Zimmer had registered the patent with the U.S. Patent Office five years ago.c.An internally developed trademark registered with the federal government for $13,000 on November 1, 2012. Management decided the trademark has an indefinite life.Required:1.Compute the acquisition cost of each intangible asset.(Omit the “$” sign in your response.)Acquisition cost Technology$ Patent Trademark2.Compute the amortization of each intangible at December 31, 2012. The company does not use contra-accounts. (Assume the company uses straight-line method.) (Leave no cells blank – be certain to enter “0” wherever required. Omit the “$” sign in your response.)Amortization Technology$ Patent Trademark3.Show how these assets and any related expenses should be reported on the balance sheet and income statement for 2012.(Omit the “$” sign in your response.) Income statement for 2012: Operating expenses: $ Balance sheet at December 31, 2012: (under noncurrent assets) Intangibles: $ $eBook LinkView Hint #1.mhecloud.mcgraw-hill.com/”>references 3.value:1.00 pointsYou are a financial analyst for Ford Motor Company and have been asked to determine the impact of alternative depreciation methods. For your analysis, you have been asked to compare methods based on a machine that cost $106,000. The estimated useful life is 13 years, and the estimated residual value is $2,000. The machine has an estimated useful life in productive output of 200,000 units. Actual output was 20,000 in year 1 and 16,000 in year 2.Required:1.For years 1 and 2 only, prepare separate depreciation schedules assuming:a.Straight-line method.(Do not round intermediate calculations and round your final answers to the nearest dollar amount.Omit the “$” sign in your response.)YearDepreciationExpenseAccumulatedDepreciationNetBook ValueAt acquisition$ 1$ $ 2$ b.Units-of-production method.(Do not round intermediate calculations and round your final answers to the nearest dollar amount. Omit the “$” sign in your response.)YearDepreciationExpenseAccumulatedDepreciationNetBook ValueAt acquisition$ 1$ $ 2 c.Double-declining-balance method.(Do not round intermediate calculations and round your final answers to the nearest dollar amount.Omit the “$” sign in your response.)YearDepreciationExpenseAccumulatedDepreciationNetBook ValueAt acquisition$ 1$ $ 2 During 2012, Jensen Company disposed of three different assets. On January 1, 2012, prior to their disposal, the accounts reflected the following:AssetOriginalCostResidualValueEstimatedLifeAccumulatedDepreciation(straight line) Machine A$21,000 $3,000 8 years$13,500 (6 years) Machine B41,000 4,000 10 years29,600 (8 years) Machine C75,000 5,000 15 years56,000 (12 years) The machines were disposed of in the following ways: a.Machine A: Sold on January 1, 2012, for $7,200 cash.b.Machine B: Sold on December 31, 2012, for $8,500; received cash, $2,500, and a $6,000 interest bearing (12 percent) note receivable due at the end of 12 months.c.Machine C: On January 1, 2012, this machine suffered irreparable damage from an accident. On January 10, 2012, a salvage company removed the machine at no cost. 4.value:1.00 pointsRequired:1.Give all journal entries related to the disposal of each machine in 2012.(Leave no cells blank – be certain to enter “0” wherever required. In cases where no entry is required, please select the option “No journal entry required” for your answer to grade correctly. Omit the “$” sign in your response.)Machine AGeneral JournalDebitCredit Machine BGeneral JournalDebitCredit Machine CGeneral JournalDebitCredit eBook Links (2).mhecloud.mcgraw-hill.com/”>references 5.value:1.00 points2.Explain the accounting rationale for the way that you recorded each disposal.Machine A: Disposal of a long-lived asset with the price below net book value results in aMachine B: Disposal of a long-lived asset with the price above net book value results in aMachine C: Disposal of a long-lived asset due to damage results in a remaining book value.
https://papertowriters.com/wp-content/uploads/2020/07/Writerspng-300x62.png 0 0 admin https://papertowriters.com/wp-content/uploads/2020/07/Writerspng-300x62.png admin2020-05-06 17:44:532020-05-06 17:44:53ACCT 2402 Introduction to Mang..