1.

Aneko Company reports the following ($000s): net sales of $13,000 for 2018 and $12,350 for 2017; end-of-year total assets of $16,200 for 2018 and $13,800 for 2017.

Compute its total asset turnover for 2018. (Enter your answers in thousands.)

2.

Assume a companys equipment carries a book value of $48,000 ($49,500 cost less $1,500 accumulated depreciation) and a fair value of $44,250, and that the $3,750 decline in fair value in comparison to the book value meets the impairment test.

Prepare the entry to record this $3,750 impairment.

3.

A fleet of refrigerated delivery trucks is acquired on January 5, 2018, at a cost of $1,010,000 with an estimated useful life of 8 years and an estimated salvage value of $90,900.

Compute the depreciation expense for the first three years using the double-declining-balance method. (Round your answers to the nearest whole dollar.)

4.

Required information

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On January 2, 2018, the Matthews Band acquires sound equipment for concert performances at a cost of $68,400. The band estimates it will use this equipment for four years, during which time it anticipates performing about 200 concerts. It estimates that after four years it can sell the equipment for $1,000. During year 2018, the band performs 45 concerts.

Matthews Band uses straight-line depreciation but realizes at the start of the second year that due to concert bookings beyond expectations, this equipment will last only a total of three years. The salvage value remains unchanged.

Compute the revised depreciation for both the second and third years.

5.

Required information

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On January 2, 2018, the Matthews Band acquires sound equipment for concert performances at a cost of $68,400. The band estimates it will use this equipment for four years, during which time it anticipates performing about 200 concerts. It estimates that after four years it can sell the equipment for $1,000. During year 2018, the band performs 45 concerts.

Compute the year 2018 depreciation using the units-of-production method.

6.

Required information

[The following information applies to the questions displayed below.]

On January 2, 2018, the Matthews Band acquires sound equipment for concert performances at a cost of $68,400. The band estimates it will use this equipment for four years, during which time it anticipates performing about 200 concerts. It estimates that after four years it can sell the equipment for $1,000. During year 2018, the band performs 45 concerts.

Compute the year 2018 depreciation using the straight-line method.