Answer P 7.27 only

Puber Chapter Long An Natural Po Chat the depreciation Experte for each of the first three years the head bedingung charthrown mod Does the selection of decision method wit a company cash now from operation in what ways Capitale verse Expense. During the year, New Parts Company red production line in order to commodate the roche parts for new car models. The retingos were capitalized to New Pants balance sheet.pny observers suggested that the tooling costs should have been charged income at the time ruse rather than capitalized to the company'shalance sheet Ir New Parts Company with from capitaluring and mortizing the cost of rolling to immediately expensing PELAT Intangible Assets. Elite Records & Music, Inc., had a balance sheet loaded with intangible scopy Regin 1. Straight line Double-declining balance Required che lor reporting to shutubisidees only), indicate how the following financial statement vers would be affected: 1. Operating revenue 2. Operating expenses 3 Cash flow from operations 5. Liabilities Required 7.18 . . rights on music, goodwill from various prior ncquisitions, and internet customer lists purchased from other online music retailers. During the year, several accounting policy decisions were required regarding various intangible asset-related expenditures What accounting policy should be adopted for the following expenditures? 1. Acquisition of new music rights from the estate of a deceased artist 2. Advertising costs intended to create customer loyalty. 3. Purchase of online customer lists from Amazon.com 4. Marketing costs to promote the new music library 5. Computer programmer costs to fully convert the new music library to a digital format Betterment versus Maintenance Expenditures. During the year, Glens Falls, Inc. made the follow expenditures relating to plant, machinery, and equipment: Completed regularly scheduled repairs at a cost of $240.000, Overhauled several stamping machines at a cost of $400,000 to improve production efficiency. Replaced a broken cooling pump on a 100-ton press at a cost of $20,000 Required Identify which expenditures should be expensed as a maintenance expense or capitalized as a betw outlay. Depletion Expense. During the year, Tulsa Oil Corporation paid $50 million for a partial interest in dian oil field with proven reserves. The company's share of the future production was capped at tem barrels Required 1. Assuming that the oil field attains its expected future output, calculate Tulsa's depletion charge 2. If in the following year, Tulsa's share of the field's total production amounts to 2.25 million be is the firm's depletion expense for that following year? fin in the following Internet website www.irs.goy and locate Publication 535 "Business Expo tinn to determine how oil and . 7.29