Compute the amount of cash the company received for disposals and transfers for the Show computations. Comput the percentage of depreciation expense to cash flows from operation for the current year. What do you interpret from the result? Determining Financial Statement Effects of Activities Related to Various Long-Lived Assets (AP8-6) During the 2011 annual accounting period, BSP company completed the followings transactions: On January 1, 2011, purchased a patent for $28, 000cash (estimated useful life, seven years). On January 1, 2011, purchased the assets (not detailed) of another business for $164, 000 cash, including $10, 000 for goodwill. The company assumed no liabilities Goodwill has an indefinite life. On December 31, 2011, constructed a storage shed, on land leased from D. Healed, The cost was $15. 600, The company uses straight-line depreciation. The lease will expire in three years. (Amounts spent to enhance leased property . are capitalized as intangible assets called Leasehold Improvements. ) Total expenditures during 2011 for ordinary repairs and maintenance were $5, 500. On December 31, 2011, sold Machine A for $6, 000 cash. Original cost on January 1, 2010, was $25. 000; accumulated depreciation (straight line) to December 31, 2010 was $16, 000 ($5, 000 residual value and five-years useful life) On December 31, 2011. paid $5, 000 for a complete reconditioning of Machine B acquired on January 1, 2010, Original cost $31. 000; accumulated depreciation (straight line) to December 31, 2010. $ 1. 600 ($7, 000 residual value and I5-year useful life). Required: For each of these transactions. indicate the accounts, amounts, and effects ( + for Increase and - for decrease) on the accounting equation. Use the following structure: For each of these assets, except the assets not detailed in (b), compute depreciation and amortization to be recorded at the end of the year on December 31. 2011, Computing Goodwill from the Purchase of a Business and Related Depredation and Amortization Compute the amount of cash the company received for disposals and transfers for the Show computations. Comput the percentage of depreciation expense to cash flows from operation for the current year. What do you interpret from the result? Determining Financial Statement Effects of Activities Related to Various Long-Lived Assets (AP8-6) During the 2011 annual accounting period, BSP company completed the followings transactions: On January 1, 2011, purchased a patent for $28, 000cash (estimated useful life, seven years). On January 1, 2011, purchased the assets (not detailed) of another business for $164, 000 cash, including $10, 000 for goodwill. The company assumed no liabilities Goodwill has an indefinite life. On December 31, 2011, constructed a storage shed, on land leased from D. Healed, The cost was $15. 600, The company uses straight-line depreciation. The lease will expire in three years. (Amounts spent to enhance leased property . are capitalized as intangible assets called Leasehold Improvements. ) Total expenditures during 2011 for ordinary repairs and maintenance were $5, 500. On December 31, 2011, sold Machine A for $6, 000 cash. Original cost on January 1, 2010, was $25. 000; accumulated depreciation (straight line) to December 31, 2010 was $16, 000 ($5, 000 residual value and five-years useful life) On December 31, 2011. paid $5, 000 for a complete reconditioning of Machine B acquired on January 1, 2010, Original cost $31. 000; accumulated depreciation (straight line) to December 31, 2010. $ 1. 600 ($7, 000 residual value and I5-year useful life). Required: For each of these transactions. indicate the accounts, amounts, and effects ( + for Increase and - for decrease) on the accounting equation. Use the following structure: For each of these assets, except the assets not detailed in (b), compute depreciation and amortization to be recorded at the end of the year on December 31. 2011, Computing Goodwill from the Purchase of a Business and Related Depredation and Amortization