1. Wenner Furnace Corp. purchased machinery for $515,000 on May 1, 2012. It is estimated that it will have a useful life of 10 years, salvage value of $15,000, production of 280,000 units, and working hours of 30,000. During 2013, Wenner Corp. uses the machinery for 2,650 hours, and the machinery produces 26,250 units. From the information given, compute the depreciation charge for 2013 under each of the following methods: Straight Line, Units-of-output, Working Hours, Double-declining-balance.

2. Ottawa Corporation owns machinery that cost $20,000 when purchased on July 1, 2009. Depreciation has been recorded at a rate of $2,400 per year, resulting in a balance in accumulated depreciation of $8,400 at December 31, 2012. The machinery is sold on September 1, 2013, for $10,500. Record the journal entry for this transaction.

3. Green Market Inc. acquires a building for $6,000,000 on July 1, 2012. Green Market expects the buildings useful like is 30 years with no residual value assigned, and depreciates it using the straight-line method. On January 1, 2017, the companys new controller reviews the fixed asset listing and determines that a total useful life of 20 years is more appropriate. Record the journal entry to be posted for 2017 and also for 2018.

4. Harcott Co. incurs $180,000 in legal costs from June 1 to June 30, 2016, to successfully defend a patent that had an initial capital cost of $500,000 recorded on January 1, 2012. The estimated useful life of the patent was 20 years from the date it was capitalized, amortized on a straight-line basis using the half-year convention. Records the incurrence of legal fees and any other journal entries necessary for 2016.

5. On January 1, 2013, Sans Serif Publishers, Inc., a computer services and printing firm, leased printing equipment from First Lease Corp. The lease agreement specifies six annual payments of $100,000 beginning January 1, 2013, the inception of the lease, and at each January 1 thereafter. The useful life of the equipment is estimated to be six years. Before deciding to lease, Sans Serif considered purchasing the equipment for its cash price of $479,079. If funds were borrowed to buy the equipment, the interest rate would have been 10%. Record the journal entries for both the lessee and lessor for years 1 and 2.