Question;Newbirth Coatings Company purchased waterproofing equipment on January 2, 2009,for $380,000. The equipment was expected to have a useful life of four years, or 8,000operating hours, and a residual value of $36,000. The equipment was used for 3,000hours during 2009, 2,500 hours in 2010, 1,400 hours in 2011, and 1,100 hours in 2012.InstructionsDetermine the amount of depreciation expense for the years ended December 31, 2009,2010, 2011, and 2012, by (a) the straight-line method, (b) the units-of-production method,and (c) the double-declining-balance method. Also determine the total depreciation expensefor the four years by each method. The following columnar headings are suggestedfor recording the depreciation expense amounts:Depreciation ExpenseStraight- Units-of- Double-Declining-Line Production BalanceYear Method Method MethodPR 10-2AData related to the acquisition of timber rights and intangible assets during the currentyear ended December 31 are as follows:a. On December 31, the company determined that $20,000,000 of goodwill was impaired.b. Governmental and legal costs of $675,000 were incurred on June 30 in obtaining apatent with an estimated economic life of 10 years. Amortization is to be for onehalfyear.c. Timber rights on a tract of land were purchased for $1,665,000 on February 16. Thestand of timber is estimated at 9,000,000 board feet. During the current year, 2,400,000board feet of timber were cut and sold.Instructions1. Determine the amount of the amortization, depletion, or impairment for the currentyear for each of the foregoing items.2. Journalize the adjusting entries to record the amortization, depletion, or impairmentfor each item.
Paper#48679 | Written in 18-Jul-2015Price : $21