7. Barden Building Company constructed a specialized equipment at a cost of $14,700,000 plus capitalized It took the entire year of 2017 to construct the asset. The weighted average accumulated expenditures ing for capitalization of interest during 2017 were $9,800,000. The company had the following debt outstanding mber 31, 2017: 5-ycar note to finance construction of specialized equipment, d. January 1, 2017, with interest payable annually on January 1 $6,300,000 struction specific loan) ten-year bonds issued at par on December 31,2011 , with interest e annually on December 31 rear note payable, dated January 1, 2016, with interest payable 7,000,000 on January 1 amounts of each of the following (show your calculations). company has a trademark with carrying value of $750,000 and an indefinite life. At the end of year 4 , an event 'curred indicating that the asset may be impaired. The trademark's fair value is $700,000, and its undiscounted future th flows are $790,000. The company decided to bypass qualitative assessment and directly perform the quantitative ord the entry for the impairment loss on trademark, if any. value the asset would be reported in the balance sheet of the year 4 ? 3. If the equipment has a useful life of 15 years with $250,000 residual value, calculate the amount of annual depreciation on a straight-line basis beginning the year 2018. 4. At the beginning of 2024 , the company made a major overhaul of the equipment by incurring $1,300,000, which extends the useful life by another 8 years beyond its original useful life with zero residual value. Calculate annual depreciation on the machine from the year 2024 onward assuming that the company charges full year depreciation in the year of addition. In 2026, due to technological advancement, a new improved equipment came to the market making the existing equipment a bit out of date. As a result, the useful life of the equipment would last only up to the year 2027. Compute the annual depreciation for the years 2026 and 2027. 7. Barden Building Company constructed a specialized equipment at a cost of $14,700,000 plus capitalized It took the entire year of 2017 to construct the asset. The weighted average accumulated expenditures ing for capitalization of interest during 2017 were $9,800,000. The company had the following debt outstanding mber 31, 2017: 5-ycar note to finance construction of specialized equipment, d. January 1, 2017, with interest payable annually on January 1 $6,300,000 struction specific loan) ten-year bonds issued at par on December 31,2011 , with interest e annually on December 31 rear note payable, dated January 1, 2016, with interest payable 7,000,000 on January 1 amounts of each of the following (show your calculations). company has a trademark with carrying value of $750,000 and an indefinite life. At the end of year 4 , an event 'curred indicating that the asset may be impaired. The trademark's fair value is $700,000, and its undiscounted future th flows are $790,000. The company decided to bypass qualitative assessment and directly perform the quantitative ord the entry for the impairment loss on trademark, if any. value the asset would be reported in the balance sheet of the year 4 ? 3. If the equipment has a useful life of 15 years with $250,000 residual value, calculate the amount of annual depreciation on a straight-line basis beginning the year 2018. 4. At the beginning of 2024 , the company made a major overhaul of the equipment by incurring $1,300,000, which extends the useful life by another 8 years beyond its original useful life with zero residual value. Calculate annual depreciation on the machine from the year 2024 onward assuming that the company charges full year depreciation in the year of addition. In 2026, due to technological advancement, a new improved equipment came to the market making the existing equipment a bit out of date. As a result, the useful life of the equipment would last only up to the year 2027. Compute the annual depreciation for the years 2026 and 2027
