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ACCT 2402 Introduction to Mang..

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Question;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$$234b.Units-of-production (use four decimal places for the per unit output factor).YearDepreciationExpenseAccumulatedDepreciationNetBook ValueAt acquisition$1$$234c.Double-declining-balance.YearDepreciationExpenseAccumulatedDepreciationNetBook ValueAt acquisition$1$$234eBook Linkreferences2.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 #1references 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$$2c.Double-declining-balance method.(Do not round intermediate calculations and round your final answers to the nearest dollar amount.Omit the "$" sign in your response.)YearDepreciationExpenseAccumulatedDepreciationNetBook ValueAt acquisition$1$$2During 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)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.

 

Paper#45264 | Written in 18-Jul-2015

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