BE10-14 Information related to property, plant, and equipment, natural resources, and intangible: at December 31, 2002 for Joker Company is as follows: buildings, $800,000; accumulated amortiza- tion-buildings, $650,000; goodwill, $410,000; coal mine, $200,000; and accumulated amortization- coal mine, $108,000. Prepare a partial balance sheet for Joker Company for these items.

BE10-14 Information related to property, plant, and equipment, natural resources, and intangible: at December 31, 2002 for Joker Company is as follows: buildings, $800,000; accumulated amortiza- tion-buildings, $650,000; goodwill, $410,000; coal mine, $200,000; and accumulated amortization- coal mine, $108,000. Prepare a partial balance sheet for Joker Company for these items.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Required information (The following information applies to the questions displayed below.] During the current year, Merkley Company disposed of three different assets. On January 1 of the current year, prior to the disposal of the assets, the accounts reflected the following: Accumulated Original Residual Estimated Life 8 years 8 years Depreciation (straight line) $20,250 (6 years) 33,750 (6 years) 48,918 (12 years) Asset Cost Value Machine A $ 30,000 $ 3,000 Machine B 49,000 4,000 Machine C 75,500 6,200 17 years The machines were disposed of during the current year in the following ways: a. Machine A: Sold on January 1 for $9,450 cash. b. Machine B: Sold on December 31 for $10,325; received cash, $2,500, and a $7,825 interest-bearing (12 percent) note receivable due at the end of 12 months. c. Machine C: On January 1, this machine suffered irreparable damage from an accident. On January 10, a salvage company removed the machine at no cost. Required: 1. Give all journal entries related…
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Danube, Toggle, and ConnectOn rely on various intangible assets to operate their businesses. These companies amortize the cost of these assets using the straight-line method over the following average estimated useful lives (in years), as reported in their annual reports. Type of Intangible Asset Developed Technology Danube 5.4 Trade Names 5.9 Toggle 5.6 10.1 ConnectOn 3.5 11.5 Customer Relationships 5.1 5.5 7.5 Required: 1. Based on these estimates, identify the company that uses the longest periods for amortizing most of its classes of intangible assets. Toggle Danube ConnectOn 2. Will these estimates increase or decrease that company's net income relative to its competitors? Increase Decrease
Computing Impairment of Intangible Assets Stiller Company had the following information for its three intangible assets. 1. Patent: A patent was purchased for $140,000 on June 30 of Year 1; Stiller estimated the useful life of the patent to be 15 years. On December 31 of Year 3, the estimated future cash flows attributed to the pat were $119,000. The fair value of the patent was $105,000. 2. Trademark: A trademark was purchased for $7,000 on August 31 of Year 2. The trademark is considered to have an indefinite life. The fair value of the trademark on December 31 of Year 3 is $3,500. 3. Goodwill: Stiller recorded goodwill in January of Year 2, related to a purchase of another company. The carrying value of goodwill is $42,000 on December 31 of Year 3. On December 31 of Year 3, the segment for which the goodwill relates had a fair value of $812,000. The book value of the net assets of the segment (including goodwill) is $840,000. a. Classify each of the intangible assets above as a…
Drabinski Ltd. decided on 1 July 20X3 to dispose of an asset group consisting of land, a building, and equipment. An active plan of disposal is being carried out, and sale is highly probable within the following year. The assets’ carrying values and estimated recoverable amounts at 1 July 20X3 are as follows: Cost Carrying Value Estimated Recoverable Amount Land $ 470,000 $ 470,000 $ 498,000 Building 3,400,000 1,640,000 970,000 Equipment 1,040,000 470,000 357,000 $ 4,910,000 $ 2,580,000 $ 1,825,000 On 31 December 20X3, the net recoverable amount of the group is reliably estimated to be $1,859,000. On 1 April 20X4, the asset group is sold for $1,919,000, net of costs to sell. Prepare journal entries that are appropriate to record the information above. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Do not give answer in image
what is the solution and/or answer to this question? Amortization and Depletion Entries Data related to the acquisition of timber rights and intangible assets during the current year ended December 31 are as follows: Timber rights on a tract of land were purchased for $595,000 on February 22. The stand of timber is estimated at 3,500,000 board feet. During the current year, 900,000 board feet of timber were cut and sold. On December 31, the company determined that $970,000 of goodwill was impaired. Governmental and legal costs of $3,672,000 were incurred on April 3 in obtaining a patent with an estimated economic life of 12 years. Amortization is to be for three-fourths of a year. Required: 1. Determine the amount of the amortization, depletion, or impairment for the current year for each of the foregoing items. Do not round your intermediate calculation.
Information has been collected regarding Orange Company’s cash-generating unit that includes goodwill. At 31 December 20X5, the assets of the Orange Company’s cash-generating unit are shown as follows (in millions) on the company’s SFP: Cost Accumulated Depreciation Net Book Value Goodwill $ 1,360 $ 0 $ 1,360 Equipment 4,850 3,150 1,700 Building 7,320 2,330 4,990 Patent rights 1,290 320 970 $ 14,820 $ 5,800 $ 9,020 An impairment test indicates that the recoverable amount assigned to the assets of this CGU is $6,200 million. The assets are not separable—they must be operated or sold together as a group.Required:1. Prepare an adjusting journal entry to record the impairment. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your intermediate percentage answers to the nearest whole number (i.e.…
Information has been collected regarding Orange Company’s cash-generating unit that includes goodwill. At 31 December 20X5, the assets of the Orange Company’s cash-generating unit are shown as follows (in millions) on the company’s SFP: Cost Accumulated Depreciation Net Book Value Goodwill $ 1,360 $ 0 $ 1,360 Equipment 4,850 3,150 1,700 Building 7,320 2,330 4,990 Patent rights 1,290 320 970 $ 14,820 $ 5,800 $ 9,020 An impairment test indicates that the recoverable amount assigned to the assets of this CGU is $6,200 million. The assets are not separable—they must be operated or sold together as a group.Required:1. Prepare an adjusting journal entry to record the impairment. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your intermediate percentage answers to the nearest whole number (i.e.…
The following property and equipment section was obtained from a recent Abbott Laboratories 10-K. Property and equipment, at cost Land. $ 370,949 Buildings. Equipment.. Construction in progress.. 2,655,356 8,813,517 920,599 12,760,421 Less: accumulated depreciation and amortization.. Net property and equipment... 6,757,280 $ 6,003.141 Property and Equipment Depreciation and amortization are provided on a straight-line basis over the estimated useful lives of the assets. The following table shows estimated useful lives of property and equipment. Classification Estimated Useful Lives Buildings.. Equipment.. 10 to 50 years (average 27 years) 3 to 20 years (average 11 years) During the year, the company reported $868,808 for depreciation expense. What is Abbott Laboratories' estimated useful life of depreciable assets?
Information has been collected regarding Orange Company's cash-generating unit that includes goodwill. At 31 December 20X5, the assets of the Orange Company's cash-generating unit are shown as follows (in millions) on the company's SFP: Goodwill Equipment Building Patent rights Cost $ 1,240 4,400 6,640 2,040 $14,320 Accumulated Depreciation $ 2,900 2,170 290 $5,360 Net Book Value $1,240 1,500 4,470 1,750 $8,960 An impairment test indicates that the recoverable amount assigned to the assets of this CGU is $5,600 million. The assets are not separable-they must be operated or sold together as a group. Required: 1. Prepare an adjusting journal entry to record the impairment. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your intermediate percentage answers to the nearest whole number (i.e. 0.12 should be considered as 12%) and final answers to the nearest whole dollar amount. Enter the amounts in millions.) View…
2) (8 points) A company's property records revealed the following information about one of its plant assets: Cost Salvage Purchase Date Estimated Value Depreciation Method Life $ 450,000 $ 30,000 10/01 7 years Straight-line Calculate the depreciation expense for the asset in Year 1 and Year 2 for the year ended December 31.