Paleota Company purchased a patent from Finise for $234,000. At the time of purchase, the patent had a remaining useful life of 10 years. Determine the patent amortization expense for the first year. O $23,400 O $23,000 $14,000 O $9,800
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Patent Amortization Expense = Cost pf Patent / Remaining Useful Life
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- 17 Your company purchased an asset with a total cost of $300,000. The asset has an expected useful life of 20 years. The asset also has an expected residual value of $50,000. Please prepare the depreciation amounts for the first 3 years of the asset’s life using Straight-Line Method and Double Declining Balance methods. Please detail the depreciation amount and the ending book value for each year.On 1 October 20X5 Dearing Co acquired a machine under the following terms. $ Cost 1,050,000 Trade discount (applying to cost only) 20% Early Settlement discount taken(on the payable amount 5% of the based cost only) Freight charges 30,000 Electrical installation cost 28,000 Staff training in use of machine 40,000 Pre-production testing 22,000 Purchase of a three-year maintenance contract 60,000 On 1 October 20X7 Dearing Co decided to upgrade the machine by…Steele Corp. purchases equipment for $20,000. Regarding the purchase, Steele recorded the following transactions: • Paid shipping of $900. • Paid installation fees of $1,800. • Pays annual maintenance cost of $280. • Received a 5% discount on $20,000 sales price. Determine the acquisition cost of the equipment.
- 1. DATE 2. On 1/1/18 Meganco purchased a new lathe for $400,000 installed. The physical life of the lathe is 10 years with a salvage value of $20,000 at the end of that time period. The lathe was purchase for a contract that will provide revenue to Meganco for 5 years. The lathe will be sold at the end of the contract for $50,000. Required: DATE Make the required journal entry on 12/31/18 and 12/31/19 assuming that the lathe is depreciated using 200% double declining balance. ACCOUNT Required: Kenco purchased a new CNC lathe 6 years ago that had an installed cash cost of $475,000. The lathe was being depreciated over 8 years using straight line deprecation without taking salvage value into consideration. On 12/31 of the sixth year, Kenco sold the lathe to a machine tool dealer for $85,000. DR ACCOUNT CR Assume that lathe has been depreciated over six years and that accumulated depreciation is up to date. Make the required journal entry to record the transaction in Kenco'saccounting…Problems 43 and 44 are based on the following statement: Used New machine machine Initial Cost 15,000 40,000 ($) Annual 8,000 2,000 operating cost ($/year) Salvage 5,000 10,000 value ($) Life (years) 3 6 Use an interest rate of 10% per year 43. The present worth of the new machine is closest to: (A) $43,630 (B) $43,066 (C) $45,210 (D) $49,660 44. To compare the machines on the basis of a present worth analysis, the present worth values to use are: (A) PWused $31,139, PW new = $43,066 (B) PWused $31,139, PW new = $37,461 (C) PWused $54,533, PW new = $43,066 (D) PWused $54,533, PW new = $37,461On 1 May 2020, Ron Trading purchased a new machine. The following paymentsrelate to the machine.List price $21,500Purchase discount $2,000Transportation cost $300Repair of damage parts incurred in transporting the machine $1,000Fees paid to test the machine before use $500Fees paid to the installer to install the machine $800Machine operator’s salary for the first month of operation $3,000Maintenance costs for the first month of operation $300(i) Identify and compute the cost of the machine to be recognised. Explainyour reasoning.(ii) Journalise the transactions. Assume the above payments are paid in cash.
- am Warren Company plans to depreciate a new building using the double declining balance depreciation method. The building cost is $780,000. The estimated residual value of the building is $48,000 and it has an expected useful life of 25 years. What is the building's book value at the end of the first year? Grew H Multiple Choice O $717,600 $62,400 $31,200 $33.850 < Prev11. Zach's Corporation purchased a Jacquard machine for P6M, freight and installation charges amounted to 3% of the purchase price. If the machine will be depreciated over a period of 10 years with a salvage value of 6%, determine the depreciation cost during the 5th year using the SLM method. 12. An electric sewing machine costs P10,000 with a salvage value of P500 at the end of 10 years. Calculate the annual depreciation cost by the sinking fund method at 5% interest. 13. CMM Company was constructed at a first cost of PSM and with estimated salvage value of X at the end of 25 years. Find the value of X using sinking fund if the book value amounted to P5,480,093.88 at the end of 15 years with an interest rate of 10% annually. 14. An asset for drilling was purchased and place in service by a petroleum production company. Its initial investment is P50,000 and it has an estimated salvage value of P13,000 at the end of an estimated useful life of 10 years. Compute the book value at the…Kemp Inc. acquired a new processing machine: P1,800,000 Invoice cost Transportation cost 50,000 Installation cost 120,000 The purchase agreement stipulated that if payment is made within 10 days, the entity will receive a 5% discount. However, the entity paid after the discount time had expired. The new entity's main engineer spent two-thirds of his time on the new machine's trial run. The remuneration is P90,000 per month. The company requested for an allowance from the supplier since the machine's performance was below par. A cash allowance of P100,000 was issued by the supplier. The cost of uninstalling the old machine before installing the new unit was P10,000. a. P1,800,000 b. P1,840,000 c. P1,870,000 d. P1,780,000
- Winston Printing purchased a new machine on January 1. 2020, at a cost of 120000$. The company estimated that the machine will have a residual value of 12000$. The machine is expected to be used for 12000 working hours during its 4 year life. The depreciable cost per unite a. 10$ per hour O b. 12$ per hour O c. 5S per hour O d. 9S per hourAcquisition of a new machine cost #680,000. Delivery, installation, and other expenses cost 15% of the purchasing cost. The machine has a useful life of 15 years with a scrap value of P85,000. Using the SYD method, what is the book value of the machine after 13 years? A P127,056.50 B P102,425.00 C P144,026.90 D P115,500.10Algor Inc. entered into a $975,000 3-year contract to maintain a client's computer system. At the end of the first year, the costs incurred on the contract were $225,000 and it was estimated that a further $520,000 would be incurred over the remaining years of the contract. What is the amount of profit that can be recognized on this contract for the first year? $196,875 $69.463 $421,875 $294.463