AC$3220$ Inc. is a publicly traded company that designs and manufactures environmentally$-$friendly fishing

vessels. The high$-$tech boats have the ability to fish in more diverse weather conditions while minimizing the

use of fossil fuels. The company owns the following assets:

Manufacturing equipment that was purchased for $$250,000$ on January $1,2020.$ The equipment

was estimated to have a useful life of $10$ years with no residual value.

A patent for the fish harvesting technology that was purchased for $$120,000$ on January $1,2020.$ The

patent is estimated to have a remaining legal life of $10$ years with no residual value.

AC$3220$ has a fiscal year end of December $31$ and uses straight$-$line depreciation. On January $1,2023,$

AC$3220$ determines that the equipment actually only has a $7-$year useful life from the acquisition date, but

with a residual value of $$25,000.$ In addition, the economic benefits of the patent were determined to only

last $6$ years from the acquisition date.

Instructions

a$)$ Calculate the depreciation expense and amortization expense for each asset for $2023.$

b$)$ Calculate the balance in the accumulated depreciation and accumulated amortization accounts for

each asset on December $31,2023.$

c$)$ Calculate the net amount to be reported in the $2023$ of financial position for each of these assets at

December $31,2023.$AC$3220$ Inc. is a publicly traded company that designs and manufactures environmentally$-$friendly fishing vessels. The high$-$tech boats have the ability to fish in more diverse weather conditions while minimizing the use of fossil fuels. The company owns the following assets:

$1.$ Manufacturing equipment that was purchased for $$250,000$ on January $1,2020.$ The equipment was estimated to have a useful life of $10$ years with no residual value.

$2.$ A patent for the fish harvesting technology that was purchased for $$120,000$ on January $1,2020.$ The patent is estimated to have a remaining legal life of $10$ years with no residual value.

AC$3220$ has a fiscal year end of December $31$ and uses straight$-$line depreciation. On January $1,2023,$ AC$3220$ determines that the equipment actually only has a $7-$year useful life from the acquisition date, but with a residual value of $$25,000.$ In addition, the economic benefits of the patent were determined to only last $6$ years from the acquisition date.

Instructio

ns

a$)$ Calculate the depreciation expense and amortization expense for each asset for $2023.$

b$)$ Calculate the balance in the accumulated depreciation and accumulated amortization accounts for each asset on December $31,2023.$

c$)$ Calculate the net amount to be reported in the $2023$ of financial position for each of these assets at December $31,2023.$