Check my work Required information [The following information applies to the questions displayed below.] As part of a major renovation at the beginning of the year, Atiase Pharmaceuticals, Inc. sold shelving units (recorded as Equipment) that were 10 years old for $920 cash. The shelves originally cost $6,880 and had been depreciated on a straight-line basis over an estimated useful life of 10 years with an estimated residual value of $480. 1. Complete the table below, indicating the account, amount, and direction of the effect on disposal. Assume that depreciation has been recorded to the date of sale. (Enter any decreases to Assets, Liabilities, or Stockholders' Equity with a minus sign. Do not round intermediate calculations.) Assets Liabilities Stockholder's Equity Depreciation Expense Sales Revenue 6,400 920 920 6880 920 6,880 At the beginning of 2017, your company buys a $31,200 piece of equipment that it expects to use for 4 years. The equipment has an estimated residual value of 4,000. The company expects to produce a total of 200,000 units. Actual production is as follows: 44.000 units in 2017. 49.000 units in 2018, 49,000 units in 2019, and 58,000 units in 2020. Required: a. Determine the depreciable cost. b. Calculate the depreciation expense per year under the straight-line method. c. Use the straight-line method to prepare a depreciation schedule. d. Calculate the depreciation rate per unit under the units-of-production method e. Use the units-of-production method to prepare a depreciation schedule. Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Required E Use the units-of-production method to prepare a depreciation schedule. (Do not round your Depreciation rate per unit.) Year Depreciation Expense Accumulated Depreciation Net Book Value $ 31,200 Acquisition Cost 2017 2018 2019 2020 $ 27,200 $ 6,800 Greer Manufacturing purchases property that includes land, buildings and equipment for $5.4 million. The company pays $188,000 in legal fees, $224,000 in commissions, and $114,000 in appraisal fees. The land is estimated at 29%, the buildings are at 38%, and the equipment at 33% of the property value. Required: a. Determine the total acquisition cost of this "basket purchase". b. Allocate the total acquisition cost to the individual assets acquired. c. Prepare the journal entry to record the purchase assuming that the company paid 30% of the amounts using cash and signed a note (due in five years) for the remainder. Complete this question by entering your answers in the tabs below. Required A Required B Required C Determine the total acquisition cost of this "basket purchase". (Enter your answer in whole dollars and not in millions.) Acquisition cost Required A Required B > The following transactions and adjusting entries were completed by a paper-packaging company called Gravure Graphics International during 2018 and 2019. The company uses straight-line depreciation for trucks and other vehicles, double-declining-balance depreciation for buildings, and straight-line amortization for patents. 2018 January 2 Paid $191,800 cash to purchase storage shed components. January 3 Paid $6,000 cash to have the storage shed erected. The storage shed has an estimated life of 10 years and a residual value of $9,000. April 1 Paid $47,000 cash to purchase a pickup truck for use in the business. The truck has an estimated useful life of five years and a residual value of $7,000. May 13 Paid $500 cash for minor repairs to the pickup truck's upholstery. July 1 Paid $14, ese cash to purchase patent rights on a new paper bag manufacturing process. The patent is estimated to have a remaining useful life of five years. December 31 Recorded depreciation and amortization on the pickup truck, storage shed, and patent. 2019 June 30 Sold the pickup truck for $40,000 cash. (Record the depreciation on the truck prior to recording its disposal.) December 31 Recorded depreciation on the storage shed. Also determined that the patent was impaired and wrote off its remaining book value (i.e., wrote down the book value to zero). Required: Prepare the journal entries required on each of the above dates. (If no entry is required for a transaction/event, select "No Journal Entry Required" In the first account field. Do not round Intermediate calculations.) Answer is complete but not entirely correct. General Journal Credit No 1 Date January 02, 2018 Building Cash Debit 101.000 101.000 2 6.000 January 03, 2018 Building Cash 6.000 April 01. 2018 Equipment 47.000 Cash 47.000 May 13, 2018 Repairs and Maintenance Expense Cash 500 July 01. 2018 Patent 14.000 Cash 14,000 December 31, 201 Depreciation Expense 15,800 1.400 Amortization Expense Accumulated Depreciation-Buildings Accumulated Depreciation Equipment Accumulated Amortization 38.200 6.000 1.400