UUJICU tis accounting treat-oberBE7-6 On January 1, 2017, the Hermann Company records show Equipment $36,000 andAccumulated Depreciation $13,600. The depreciation resulted from using the straight-line method with a useful life of 10 years and a salvage value of $2,000. On this date, thecompany concludes that the equipment has a remaining useful life of only 2 years with thesame salvage value. Compute the revised annual depreciation.ibliud ali noSX9 s vio-vd BE7-7 Prepare tabular summaries to record these transactions. (a) Echo Company retires(d) bits delivery equipment, which cost $41,000. Accumulated depreciation is also $41,000 onthis delivery equipment. No salvage value is received. (b) Assume the same informationas in part (a), except that accumulated depreciation for the equipment is $37,200 insteadof $41,000.20tonbas noitsioonBE7-8 Antone Company sells office equipment on July 31, 2017, for $21,000 cash. The officeequipment originally cost $72,000 and as of January 1, 2017, had accumulated depreciationof $42,000. Depreciation for the first 7 months of 2017 is $4,600. Prepare a tabular summaryto (a) update depreciation to July 31, 2017, and (b) record the sale of the equipment.nts.on BE7-9 Abner Company purchases a patent for $156,000 on January 2, 2017. Its estimatedbiasd.bormpnt ei tiTol beuseful life is 6mins (a) Compute amortization expense for the first year.years.s(b) Show how this patent is reported on the balance sheet at the end of the first year.leeogong asound lo elomBE7-10 Suppose in its 2017 annual report that McDonald's Corporation reports beginningtotal assets of $28.46 billion, ending total assets of $30.22 billion, net sales of $22.74 bil-lion, and net income of $4.55 billion.(a) Compute McDonald's return on assets.(b) Compute McDonald's asset turnover.ndeacreovo 2ely iBE7-11 Suppose Nike, Inc. reported the following plant assets and intangible assets forpatentsd assets

Answered: BE7-8 Antone Company equipment…

Business

Accounting

BE7-8 Antone Company equipment originally cos of $42,000. Depreciation to (a) update depreciatic

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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