Required information [The following information applies to the questions displayed below.] Complete the requirements for each of the following independent cases: Sanders Company purchased the following on January 1, 2019: •Office equipment at a cost of $45,000 with an estimated useful life to the company of three years and a residual value of $13,500. The company uses the double-declining-balance method of depreciation for the equipment. • Factory equipment at an invoice price of $831,000 plus shipping costs of $20,000. The equipment has an estimated useful life of 115,000 hours and no residual value. The company uses the units-of-production method of depreciation for the equipment. • A patent at a cost of $480,000 with an estimated useful life of 15 years. The company uses the straight-line method of amortization for intangible assets with no residual value. The company's year ends on December 31. Required: 1-a. Prepare a partial depreciation schedule of office equipment for 2019, 2020, and 2021. 1-b. Prepare a partial depreciation schedule of factory equipment. The company used the equipment for 8,400 hours in 2019, 9,600 hours in 2020, and 9,300 hours in 2021. 2. On January 1, 2022, Sanders altered its corporate strategy dramatically. The company sold the factory equipment for $727,020 in cash. Record the entry related to the sale of the factory equipment. 3. On January 1, 2022, when the company changed its corporate strategy, its patent had estimated future cash flows of $345,000 and a fair value of $322,000. What would the company report on the income statement (account and amount) regarding the patent on January 1, 2022? < Prev 7 of 7 Next ...
Required information [The following information applies to the questions displayed below.] Complete the requirements for each of the following independent cases: Sanders Company purchased the following on January 1, 2019: •Office equipment at a cost of $45,000 with an estimated useful life to the company of three years and a residual value of $13,500. The company uses the double-declining-balance method of depreciation for the equipment. • Factory equipment at an invoice price of $831,000 plus shipping costs of $20,000. The equipment has an estimated useful life of 115,000 hours and no residual value. The company uses the units-of-production method of depreciation for the equipment. • A patent at a cost of $480,000 with an estimated useful life of 15 years. The company uses the straight-line method of amortization for intangible assets with no residual value. The company's year ends on December 31. Required: 1-a. Prepare a partial depreciation schedule of office equipment for 2019, 2020, and 2021. 1-b. Prepare a partial depreciation schedule of factory equipment. The company used the equipment for 8,400 hours in 2019, 9,600 hours in 2020, and 9,300 hours in 2021. 2. On January 1, 2022, Sanders altered its corporate strategy dramatically. The company sold the factory equipment for $727,020 in cash. Record the entry related to the sale of the factory equipment. 3. On January 1, 2022, when the company changed its corporate strategy, its patent had estimated future cash flows of $345,000 and a fair value of $322,000. What would the company report on the income statement (account and amount) regarding the patent on January 1, 2022? < Prev 7 of 7 Next ...
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![iday Homework i
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Required information
[The following information applies to the questions displayed below.]
Complete the requirements for each of the following independent cases:
Sanders Company purchased the following on January 1, 2019:
Office equipment at a cost of $45,000 with an estimated useful life to the company of three years and a residual value of $13,500.
The company uses the double-declining-balance method of depreciation for the equipment.
Factory equipment at an invoice price of $831,000 plus shipping costs of $20,000. The equipment has an estimated useful life of
115,000 hours and no residual value. The company uses the units-of-production method of depreciation for the equipment.
A patent at a cost of $480,000 with an estimated useful life of 15 years. The company uses the straight-line method of amortization
for intangible assets with no residual value.
es
The company's year ends on December 31.
Required:
1-a. Prepare a partial depreciation schedule of office equipment for 2019, 2020, and 2021.
1-b. Prepare a partial depreciation schedule of factory equipment. The company used the equipment for 8,400 hours in 2019, 9,600
hours in 2020, and 9,300 hours in 2021.
2. On January 1, 2022, Sanders altered its corporate strategy dramatically. The company sold the factory equipment for $727,020 in
cash. Record the entry related to the sale of the factory equipment.
3. On January 1, 2022, when the company changed its corporate strategy, its patent had estimated future cash flows of $345,000 and
a fair value of $322,000. What would the company report on the income statement (account and amount) regarding the patent on
January 1, 2022?
< Prev
of 7
Next
..... .....
.R..](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fad5e56a2-3644-4ad3-81a4-89cd6194151c%2Fe7350d1d-5ab4-499c-9147-5fe36b18a44b%2F4huzgks_processed.jpeg&w=3840&q=75)
Transcribed Image Text:iday Homework i
Saved
!
Required information
[The following information applies to the questions displayed below.]
Complete the requirements for each of the following independent cases:
Sanders Company purchased the following on January 1, 2019:
Office equipment at a cost of $45,000 with an estimated useful life to the company of three years and a residual value of $13,500.
The company uses the double-declining-balance method of depreciation for the equipment.
Factory equipment at an invoice price of $831,000 plus shipping costs of $20,000. The equipment has an estimated useful life of
115,000 hours and no residual value. The company uses the units-of-production method of depreciation for the equipment.
A patent at a cost of $480,000 with an estimated useful life of 15 years. The company uses the straight-line method of amortization
for intangible assets with no residual value.
es
The company's year ends on December 31.
Required:
1-a. Prepare a partial depreciation schedule of office equipment for 2019, 2020, and 2021.
1-b. Prepare a partial depreciation schedule of factory equipment. The company used the equipment for 8,400 hours in 2019, 9,600
hours in 2020, and 9,300 hours in 2021.
2. On January 1, 2022, Sanders altered its corporate strategy dramatically. The company sold the factory equipment for $727,020 in
cash. Record the entry related to the sale of the factory equipment.
3. On January 1, 2022, when the company changed its corporate strategy, its patent had estimated future cash flows of $345,000 and
a fair value of $322,000. What would the company report on the income statement (account and amount) regarding the patent on
January 1, 2022?
< Prev
of 7
Next
..... .....
.R..
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