1 Montana Mining Co pays $4,872,820 for an ore deposit containing 1,446,000 tons The company installs machinery in the mine costing $150,400, which will be abandoned when the ore is completely mined Montana mines and sells 176,900 tons of ore during the year Prepare the year end entries to record both the ore deposit depletion and the mining machinery depreciation Mining machinery depreciation should be in proportion to the mines depletion (Do not round intermediate calculations Round your final answers to the nearest whole number ) 2 Robinson Company purchased Franklin Company at a price of $3,840,000 The fair market value of the net assets purchased equals $2,700,000 1 What is the amount of goodwill that Robinson records at the purchase date 2 Does Robinson amortize goodwill at year end 3 Robinson believes that its employees provide superior customer service, and through their efforts, Robinson believes it has created $1,510,000 of goodwill Should Robinson Company record this goodwill 3 Selected accounts from Gregor Co s adjusted trial balance for the year ended December 31 follow Prepare a classified balance sheet Note On the companys balance sheet, accumulated depreciation is subtracted from Equipment, accumulated amortization is subtracted from Patents, and accumulated depletion is subtracted from Silver mine Total equity $ 67,000 Accounts payable $ 3,700 Patents 7,400 Accumulated depreciationEquipment 28,300 Cash 7,700 Notes payable (due in 9 years) 28,000 Land 47,000 Goodwill 6,700 Equipment 37,000 Accumulated depletionSilver mine 6,400 Silver mine 32,000 Accumulated amortizationPatents 4,400 4 Lok Co reports net sales of $4,126,000 for Year 2 and $7,656,000 for Year 3 End of year balances for total assets are Year 1, $1,587,000 Year 2, $1,848,000 and Year 3, $1,971,000 (1) Compute Lok's total asset turnover for Year 2 and Year 3 (2) Lok's competitor has a Total Asset Turnover of 3 0 during Year 3 Is Lok performing better or worse than its competitor on the basis of total asset turnover Worse Better

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1. Montana Mining Co. pays $4,872,820 for an ore deposit containing 1,446,000 tons. The company installs machinery in the mine costing $150,400, which will be

Montana Mining Co. pays $4,872,820 for an ore deposit containing 1,446,000 tons. The company installs machinery in the mine costing $150,400, which will be abandoned when the ore is completely mined. Montana mines and sells 176,900 tons of ore during the year. Prepare the year-end entries to record both the ore deposit depletion and the mining machinery depreciation. Mining machinery depreciation should be in proportion to the mines depletion. (Do not round intermediate calculations. Round your final answers to the nearest whole number.)

Robinson Company purchased Franklin Company at a price of $3,840,000. The fair market value of the net assets purchased equals $2,700,000. 1. What is the amount of goodwill that Robinson records at the purchase date? 2. Does Robinson amortize goodwill at year-end? 3. Robinson believes that its employees provide superior customer service, and through their efforts, Robinson believes it has created $1,510,000 of goodwill. Should Robinson Company record this goodwill?

Selected accounts from Gregor Co.s adjusted trial balance for the year ended December 31 follow. Prepare a classified balance sheet. Note: On the companys balance sheet, accumulated depreciation is subtracted from Equipment, accumulated amortization is subtracted from Patents, and accumulated depletion is subtracted from Silver mine.


Total equity	$	67,000	Accounts payable	$	3,700
Patents		7,400	Accumulated depreciationEquipment		28,300
Cash		7,700	Notes payable (due in 9 years)		28,000
Land		47,000	Goodwill		6,700
Equipment		37,000	Accumulated depletionSilver mine		6,400
Silver mine		32,000	Accumulated amortizationPatents		4,400

Lok Co. reports net sales of $4,126,000 for Year 2 and $7,656,000 for Year 3. End-of-year balances for total assets are Year 1, $1,587,000; Year 2, $1,848,000; and Year 3, $1,971,000. (1) Compute Lok's total asset turnover for Year 2 and Year 3.

(2) Lok's competitor has a Total Asset Turnover of 3.0 during Year 3. Is Lok performing better or worse than its competitor on the basis of total asset turnover?