Intermediate Accounting
1st Edition
ISBN: 9780132162302
Author: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Publisher: PEARSON
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Chapter 11, Problem 11.20E
a.
To determine
To prepare:
Given Information:
Cost allocated to computer controls is $500,000 with salvage value of NIL and useful life of 5 years.
Cost allocate to engine is $2,500,000 with salvage value of $250,000 10 years of useful life.
b.
To determine
Gain or loss on sale of machinery.
Given Information:
Selling price of machinery is $1,465,000.
Machinery is sold at the end of year 5.
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Oo.89.
Subject :-Account
Conceptual Question
Identify whether or not each of the following items should be capitalized as intangible
assets from the following list. Explain your reason with relevant accounting standard.
Capitalised
Not capitalized
Employment costs of staff conducting
research activities
Cost of constructing a working model of
a new product
License purchased to permit production
and sale of a product for ten years
Equipment acquired on January 6 at a cost of $417390 has an estimated useful life of 17 years and an estimated residual value of $68805.
A. What was the annual of depreciation for the years 1-3 using the straight-line method of depreciation?
b. What was the book value of the equipment on January 1 of year 4?
c. Assuming that the equipment was sold on January 3 of year 4 for $339855 journalize the entry to record the sale. Refer to the Chat of accounts for the exact wording of account titles. d. Assuming that the equipment had been sold on January 3 of year 4 for $368885, journalize the entry to record the sale.
Chapter 11 Solutions
Intermediate Accounting
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