Sales tax Total paid 2400 1,440 e iollo) od $30,020 bA Explain how each of these costs would be accounted for. DO IT! 7-2a On January 1, 2017, Salt Creek Country Club purchased a new riding mower for $15,000. The mower is expected to have a 10-year life with a $1,000 salvage value. Prepare a tabular summary to record depreciation expense on December 31, 2017, if Salt Creek uses straight-line depreciation. gnibliud nottelletenl DO TE2 Fordon Corporation purchased a piece of equipment for $50,000. It estimated an 8-year life and $2,000 salvage value. At the end of year four (before the depreciation adjustment), it estimated the new total life to be 10 years and the new salvage value to be $4,000. Compute the revised depreciation. DO IT! 7-3 Bylie Company has an old factory machine that cost $50,000. The machine has accumulated depreciation of $28,000. Bylie has decided to sell the machine. (a) Prepare a tabular summary to record the sale of the machine for $25,000 cash. (b) Prepare a tabular summary to record the sale of the machine for $15,000 cash. DO IT! 7-4 Match the statement with the term most directly associated with it. Amortization Goodwill Franchise Intangible assets Research and development costs Rights, privileges, and competitive advantages that result from the ownership of long-lived assets that do not possess physical substance. 1. jon of the cost of an intangible asset to expense in a rational and rks or trade
Sales tax Total paid 2400 1,440 e iollo) od $30,020 bA Explain how each of these costs would be accounted for. DO IT! 7-2a On January 1, 2017, Salt Creek Country Club purchased a new riding mower for $15,000. The mower is expected to have a 10-year life with a $1,000 salvage value. Prepare a tabular summary to record depreciation expense on December 31, 2017, if Salt Creek uses straight-line depreciation. gnibliud nottelletenl DO TE2 Fordon Corporation purchased a piece of equipment for $50,000. It estimated an 8-year life and $2,000 salvage value. At the end of year four (before the depreciation adjustment), it estimated the new total life to be 10 years and the new salvage value to be $4,000. Compute the revised depreciation. DO IT! 7-3 Bylie Company has an old factory machine that cost $50,000. The machine has accumulated depreciation of $28,000. Bylie has decided to sell the machine. (a) Prepare a tabular summary to record the sale of the machine for $25,000 cash. (b) Prepare a tabular summary to record the sale of the machine for $15,000 cash. DO IT! 7-4 Match the statement with the term most directly associated with it. Amortization Goodwill Franchise Intangible assets Research and development costs Rights, privileges, and competitive advantages that result from the ownership of long-lived assets that do not possess physical substance. 1. jon of the cost of an intangible asset to expense in a rational and rks or trade
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:Motor vehicle license
Annual insurance policy
Sales tax
180
2,400
1,440
Total paid
$30,020
Explain how each of these costs would be accounted for.
DO IT! 7-2a On January 1, 2017, Salt Creek Country Club purchased a new riding mower
for $15,000. The mower is expected to have a 10-year life with a $1,000 salvage value.
Prepare a tabular summary to record depreciation expense on December 31, 2017, if Salt
Creek uses straight-line depreciation.
bos no
Cal
(L
DO IT2 Fordon Corporation purchased a piece of equipment for $50,000. It estimated
an 8-year life and $2,000 salvage value. At the end of year four (before the depreciation
adjustment), it estimated the new total life to be 10 years and the new salvage value to be
$4,000. Compute the revised depreciation.
DO IT! 7-3 Bylie Company has an old factory machine that cost $50,000. The machine has
accumulated depreciation of $28,000. Bylie has decided to sell the machine.
(a) Prepare a tabular summary to record the sale of the machine for $25,000 cash.
(b) Prepare a tabular summary to record the sale of the machine for $15,000 cash.
DO IT! 7-4 Match the statement with the term most directly associated with it.
Amortization
Goodwill
Franchise
Intangible assets
Research and development costs
Rights, privileges, and competitive advantages that result from the ownership
of long-lived assets that do not possess physical substance.
1.
The allocation of the cost of an intangible asset to expense in a rational and
tain trademarks or trade
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