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Newbirth Coatings Company purchased waterproofing...

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Newbirth Coatings Company purchased waterproofing equipment on Jan.2,2009, for 380,000. The equipment was expected to have a useful life of four years, or 8,000 operating hours, and a residual value of 36,000. The equipment was used for 3,000 hours during 2009, 2,500 hours in 2010,1,400 hours in 2011, and 1,100 hours in 2012. instructions Determine the amount of depreciation expense for the years endedDecember 31, 2009, 2010, 2011and 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 expense for the four years by each method. The following columnar headings are suggested for recording the depreciation expense amounts. PR-10-2A obj.2 a. 2009: straight-line depreciation 86,000 PR 10-6A Amortization and depletion entries obj.4,5 b. 33,750 Data related to the acquisition of timber rights and intangible assets during the current year ended cec. 31 are as follows; a. on Dec. 31, the company determined that 20,000,000 of goodwill was impaired. b. Governmental and legal cost of 675,000 were incurred on june 30 in obtaining apatent with an estimated economic life of 10 years. Amortization is to be for one-half year. c. Timber rights on a tract of land were purchased for 1,665,000 on Feb. 16 . The stand of timber is estimated at 9,000,000 board feet. During the current year 2,400,000 board feet of timber were cut and sold. Instructions 1. Determine the amount of the amortization, depletion, or impairment for the current year for each of the foregoing items. 2. Journlize the adjusting entries to record the amortization, depletion, or impairment for each item. the years ene

 

Paper#7645 | Written in 18-Jul-2015

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