Answer E7.18 only

the contenute din plant without controlled The colleted with this equipment A pament were pice of con Book of truck non costo sue holdbed to the tract of land and the new Why Per the Cost of Aspire Inc replaced its truck-and-dolly Vystem of moving inven The track-and-dolley Wold for crop for 560,000. What should be capitained to the balance her of Empire the heart of the new Conveyor system why A Calculating Repair and Maintenance Expense The War Cement Company made the following expenditures relating to its plans equipment IT Computing Depreciation Expense.Equipment costing 5790.000, with an expected cmp value of $80.000 88,000 20.000 52.300.000 40.000 225.000 Overhauled several machines at an ugrote cost of 5315.00 to improve the efficiency of the equipment over its retaining selle Replaced a broken driveshaft on a forklift at a cost of $34.000, Completed regularly scheduled repairs at a cost of $89.000, Installed a foam roof on the plant over the existing, but leaking, at-rolled roost a cost of $410,000). What amount should be expensed as repairs and maintenance? Why? TA und an estimated useful life of five years, was purchased on January 1 of the current year. Calculate the dopro ciation expense for the five years of the asset's useful life using the straight-line method and (b) the double- declining-balance method. Which method would you prefer to use for (a) income tax purposes and (b) financial reporting purposes? Why? ES Full Cost versus Successful Efforts Method. During the current year, The Culgary Ou & Gas Company hogan an exploration project in Montana. The company had paid $1.500,000 for the drilling rights on a tract of 500 acres of land. The company then spent another $180,000 building roads and containment ponds. The project called for eight exploratory wells to be drilled at an expected cost of $130,000 per well. The first eight wells drilled were found to be dry (lacking commercially viable quantities of oil or gas): however, both dhe ninth and tenth wells drilled contained commercially viable quantities of oil condensate. Consequently. two additional development wells were drilled at a cost of $140,000 per well. Calculate the capitalized cost of Calgary's oil reserves under (a) the full cost method and (b) the successful efforts method. Which method should the company adopt for income tax reporting purposes? Which method should the company use when reporting its financial results to its shareholders? Why? 39 Calculating Accelerated Depreciation. Equipment costing S820,000, with an expected useful life of twelve years and an expected salvage value of $35,000, was purchased at the beginning of the year. Calculate the depreciation expense for the first five years using (a) the sum-of-the-years' digits method and (b) the double- declining-balance method. Which method would you prefer to use for (a) income tax purposes and (b) finan- cial reporting purposes? Why